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.
Another solid update from e-tailer Kogan, Qantas investors have given the airline the biggest thumbs down imaginable in rejecting help the company boost its liquidity while Sigma Healthcare has sold and leased back two of its Distribution Centres (DC’s) for $172 million, half the number of centres in the original deal.
Yesterday we saw two conflicting outcomes from retail issues - Super Retail Group attracted support from around two-thirds of its retail shareholders while online retailer, Kogan.com had to increase the size of its issue after being knocked down in the rush.
FY20 results were in line with guidance provided in July. Credit Suisse believes, while sales growth is likely to be sustained by household income support, there is less certainty with respect to consumer expenditure after the JobKeeper payments step down in September.
While the acquisition of Matt Blatt and the acceleration in online penetration is supportive, UBS remains cautious. As stores re-open and competitive offerings emerge the broker expects the benefits for online business from the pandemic will partially reverse.
FY18 results were strong and ahead of estimates, albeit largely because of FX gains. Momentum in mobile and internet was a highlight but the broker is concerned about the lack of a trading update. UBS cuts FY19-21 estimates for earnings per share by -2-10%.