Australia's Kogan.com sees worst day in over 5 years on subdued quarter

Kogan.com

24/04/2024 03:22

(Updates)
    ** Shares of Kogan.com  KGN.AX  dive as much as 27.7% to
A$5.08, their biggest intraday fall since Oct 29, 2018 
    ** Stock top loser in ASX All Ordinaries Index  .AORD  
    ** The online retailer reports a 6.2% drop in quarterly
gross sales to A$178.3 mln ($115.73 mln) due to a reduction in
inventories; posts a 2.4% decline in revenue to A$105.9 mln 
    ** However, co reports a 13.8% rise in gross profit to A$39
mln due to higher gross margin 
    ** Citi says co's qtrly update showed accelerating decline
in its marketplace gross sales and decelerating growth in Kogan
First member adds and gross sales, a "dramatic departure" from
growth propsects shown in Jan update
    ** Brokerage sees consensus downgrades likely following the
update 
        ** "We remain unchanged in our negative view on the
competitiveness of the business" - Citi
  
        ** Shares hit lowest since Jan 25
  
    ** Stock has risen 34.4% YTD as of last close


($1 = 1.5406 Australian dollars)

 (Reporting by Archishma Iyer and Echha Jain in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))