Kogan.com exceeds expectations in first half
Kogan.com has exceeded its original 2017 full-year prospectus forecast of $6.9 million before interest, tax, depreciation and amortisation during the first half of FY17, which ended 31 December 2016.
The pureplay online retailer lifted its earning guidance in November last year, from $6.9 million to between $8-9 million for FY 2017.
Kogan.com reported better than expected sales in November and December last year, thanks to higher inventory levels following the company’s $50 million IPO in July.
“The benefits of our investment in inventory are demonstrated by the strong trading performance and margin improvement in 2Q17,” Kogan.com founder and CEO Ruslan Kogan said.
At the end of the second quarter, Kogan.com reported $41.83 million in stock, with $32.27 million held in warehouses, nearly double the amount ($18.1 million) it held in warehouses at the end of the first quarter.
“The release of capital constraints has allowed the company to operate with desired inventory levels of brand-new in-demand private label stock.
“More importantly, Christmas trading demonstrated strong demand for new products and this has continued post Christmas.
“The team is also pleased to see the investment in systems, architecture and automation made in the years leading up to our IPO delivering positive results as we start to scale the business,” Kogan said.
The retailer ended the second quarter with $26.5 million in cash.
Kogan.com has not revised its guidance at this time, since the results have yet to be audited.
“The board is closely monitoring ongoing trading performance and will consider if a further update to the company’s outlook is required at the conclusion of the auditor’s half yearly review,” Kogan said.