After previously playing down the threat from changes to the GST-free threshold, Kogan revealed in October that global sales had fallen 27 per cent since the new GST regime came into effect on July 1 . Momentum has deteriorated since October, with weak demand for Apple contributing to the slide.
Kogan.com’s total revenues for the December-half rose 9.7 per cent, with strong sales growth from higher-margin private label brands and partner brands offsetting the drop in global revenues.
Shares rise
Exclusive or private label sales rose 23.6 per cent over the half – albeit below the 39.6 per cent growth achieved in 2018 – and partner brand sales jumped 92.8 per cent, compared with 46 per cent growth in 2018, buoyed by new products and better stock availability.
Gross margins – which came under pressure in the September quarter as Kogan.com cut prices in an attempt to match overseas websites – improved in the second quarter to be flat by the end of December.
Marketing spend rose about 25 per cent and variable costs grew by less than 30 per cent – below the growth in the first quarter – while growth in active customers slowed from 41.6 per cent in the first quarter to 32.2 per cent to 1.54 million by the end of December.
After plunging more than 30 per cent after the October trading update, Kogan shares rose 10 per cent to $3.58 on Thursday as investors absorbed the latest sales and gross margin figures, which were better than expected.
Mr Kogan and finance director David Shafer have sold more than $100 million shares this year, including $40 million in September at around $6.40 a share, usually after positive updates or announcements of new categories and verticals.
Mr Kogan said the company had delivered record Christmas trading and improved marketing and operating costs, while laying the foundations for future growth by adding new services including home loans to its Kogan Money business.
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