While overall retail spending may be sluggish, the hefty profit and revenue growth at online retailer Kogan.com has demonstrated the current strength in e-commerce sales.
The ASX-listed company issued a quarterly cash flow statement and trading update, which outlined impressive earnings growth of 37.7 per cent, built largely from a 35.9 per cent surge in revenue.
Its gross margins also ticked upwards to 18.2 per cent for the first quarter of the 2018 financial year, up from 17.9 per cent in the same quarter last year.
Kogan.com is also expecting a strong Christmas trading period, with inventories since the end of June this year rising by $12.8 million.
“We are pleased to deliver a trading update that demonstrates ongoing strong year-on-year growth in revenue and profitability,” the company’s founder and CEO Ruslan Kogan said.
“Our new verticals continue to shine and attract customers … Kogan Mobile had impressive growth this quarter and, in October, celebrated its second birthday with an exceptionally popular promotion. Also, Kogan Insurance is off to a promising start after launching in August”.
However, with global retail giant Amazon due to announce an Australian launch date any day, it remains to be seen whether Kogan.com can sustain this impressive growth with a new rival competing for a slice of the pie.
On the flip side, though, strategies of both players in driving further growth in online sales may help boost the volume of online sales, in a ‘rising tide lifts all boats’ scenario for smaller businesses.
Adam Zuchetti
Adam Zuchetti is the editor of My Business, and has steered the editorial direction of the publication since the beginning of 2016. Before joining My Business, he worked on fellow Momentum Media titles The Adviser and Mortgage Business.
The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Adam has written across both consumer and business titles, including for News Corp Australia and Domain.
You can email Adam at This email address is being protected from spambots. You need JavaScript enabled to view it.
RELATED ARTICLES
Latest Opinions
Customers behaving badly: ‘My time is worth more than yours’By Adam Zuchetti
What businesses can learn from Sir Roger BannisterBy Adam Zuchetti
‘We had lost our way culturally’By Adam Zuchetti
