Kogan.com (KGN) shares rally as inventory levels ease
KGN +6.68%: The online retailer was out with a business update today which sent the stock to 7 week highs. The new financial year has started strong with sales up 21% on 1Q21 and while profit was down marginally vs the same period last year, it was 31% higher than the previous quarter. Kogan has been struggling with inventory issues however these now seem to have passed with some discounting helping to move stock. With overflow warehouses now cleared, Kogan is saving $0.8m/month in costs. Recently launched member program Kogan First had a 64% jump in numbers which should help support repeat customer activity. All in a strong update giving them a positive set up into Christmas.
MM likes the risk / reward towards KGN around $11
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