Subdued demand for Apple products contributes to Kogan’s revenue dip
Online-only retailer Kogan.com posted a decline in revenue from global brands in the six months to December 2018.
Revenue from global brands decreased 46.7 per cent from the previous corresponding period, largely due to the new GST law that went into effect last July. Kogan.com said the lack of compliance by several foreign websites selling into Australia has made it harder to compete on price.
Subdued demand for new Apple products, which resulted in a significant reduction in sales, in particular the new iPhone, also significantly impacted revenue.
Excluding Apple, global brands revenue grew by 8.5 per cent.
The company posted a 23.6 per cent rise in revenue from exclusive brands and a 92.8 per cent rise in revenue from partner brands.
Gross margin for the first half of 2019 was broadly in line with the first half of 2018.
Kogan.com founder and CEO Ruslan Kogan said 2018 was the best Christmas the business has ever had and that the company’s customer-centric approach enabled it to deliver more items faster.
“The investments we have made in a nationwide logistics footprint enabled us to delight customers all over Australia with rapid delivery, along with the great value they have come to expect from Kogan.com,” he said.