Prime Minister, Kogan reveals strong online sales and supply chain difficulties
Major retailers Kogan and Premier Investments revealed that Australians still wanted to shop online, but the two companies warned that pandemic-inspired supply chain difficulties continued to severely disrupt operations.
In a business update on Thursday morning, online-only seller Kogan revealed a sharp drop in revenue for the first half of fiscal 2022 after a series of higher marketing costs, chain delays… sourcing and millions in executive compensation weakened the company’s bottom line. .
The company’s gross profit fell 4.4% to $112.4 million as the company was forced to spend more on advertising and faced higher shipping and storage costs articles as COVID-induced supply chain disruptions wore on the business.
Retailers around the world have faced unprecedented levels of supply chain disruption during the pandemic, which has caused the repeated closure of many major ports, a surge in consumer demand and led to shortages. key items such as microchips.
Kogan’s adjusted profit fell further, down 58% to $21.7 million, which Kogan attributed to “significant stock-based compensation expenses” following the company’s annual general meeting. the company in 2020, where founders Ruslan Kogan and David Schafer received $110 million in a controversial incentive grant.
Kogan shares fell 15% to $5.99 after the market opened, with analysts calling the result a miss and raising concerns about the company’s falling margins and rising costs. carry over to the rest of the exercise.
However, the retailer’s overall sales rose during the period, up 9% to $698 million, as shoppers continued to go through their online retail therapy thanks to lockdowns and the surge. Omicron highly contagious. Kogan’s total number of active users also increased by 10% to 4 million for the first time.
It was a similar story at Premier, owner of Smiggle, Jay Jays and Peter Alexander, who told investors in their update that they saw a 27% jump in online sales to $195 million, representing a quarter of Premier’s total sales for half.