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Kogan shares have slumped to a seven-month low, despite the online retailer flagging a 90 per cent jump in full-year earnings to $23.7 million.
The listed company's shares were down 72 cents, or 11 per cent, to $5.90 in a higher Australian share market at 1.14pm AEST - the lowest level for the stock since Christmas.
Online retailer Kogan achieved a five-fold surge in value last year, and the stock is down around 13 per cent so far this year.
As physical retail continues to suffer in Australia and around the world, online retail entrepreneurs have emerged the clear winners. And in Australia, not many can come close to the online success of Ruslan Kogan.
The serial entrepreneur's core business, listed online retailer Kogan.com (ASX: KNG), has released a full-year earnings estimate this morning, with the company anticipating an earnings jump of 90 per cent for FY18.
The company estimates its full-year earnings will be up 90 per cent to $23.7 million after rounding off the financial year with a strong fourth quarter.
The boom can be pinned down to a massive customer influx throughout the financial year. At the end of June, Kogan says it had 1.4 million active customers, up 45 per cent from a year earlier.
The 90 per cent lift in earnings is thought to have come from a more than 40 per cent jump in revenue from last year's $298.5 million.
The company anticipates it will end the financial year with $41.99 million in cash and inventories of $50.2 million.
The man himself, Ruslan Kogan, founder and CEO of the listed group, says he is excited for what is to come in 2019.
"Kogan.com finished the financial year with a strong quarter of continued growth, as we execute our long term strategy," says Kogan.
"We are excited about all the growth initiatives we are implementing, as we continue to make the most of our in-demand products and services more accessible and affordable to our customers."
The company will release its final results for FY18 in August.
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Business News Australia
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