KGN +50.16%: shares in eCommerce business Kogan.com surged to 3-month highs today on the back of better-than-expected performance in the business. Sales for FY22 are expected to come in marginally above the prior year, beating out expectations of a fall from the COVID-supported growth of FY21. While sales are up, EBTIDA is expected to fall to $19.1m, which is still a small beat to consensus. Impressively they have managed to reduce inventory levels from $228m down to $161m, which includes $22m already in transit. Warehousing costs had been an issue for Kogan with inventories blowing out requiring expensive overflow capacity. Importantly it appears stock has been moved without the need for significant discounting.
A better than feared sales update from KGN
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