No Stopping Kogan’s “Retail Revolution” As August Sales Jump 446%

By Glenn Dyer | More Articles by Glenn Dyer

August was another big month for online retailer Kogan.

The company yesterday told the ASX that thanks to the continuing COVID-19 related lockdowns in Victoria) and restrictions elsewhere, it enjoyed another consecutive month of growth last month.

Kogan said its earnings before interest, tax, depreciation, and amortisation for August grew 466% compared to the same month last year, and active customers jumped by 152,000.

Investors loved the update, jumped into the shares, and sent them up 6.1% to $20.41.

Kogan said this was the largest monthly increase in customers in its history.

Gross sales jumped 117% for August and gross profit rose 165%.

Kogan has been boasting of solid monthly growth rates since March when the COVID-19 pandemic first swept through Australia.

At its full-year results in August, Kogan’s net profit after tax rose 55.9% to $26.8 million, with chief executive Ruslan Kogan saying Australia was in the midst of a “retail revolution”.

The company has also been attempting to capture more customers who are stuck at home, as the business’ marketing spend for August was also the largest monthly amount in its history. It did not specify the amount spent.

Kogan said the next update will be made to the AGM on November 20.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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