The Kogan.com Ltd [ASX: KGN] share price has seen a dramatic rise in early morning trading, up by almost 7%. The shares are now trading hands at $5.44.
Earlier today, the e-commerce giant released a business update revealing highly positive results for the previous financial year and solid projections for the future.
So, what’s going on today?
Why Kogan’s Share Price is Up
The report included several good news stories, all of which likely played a part in exciting the market. But perhaps the biggest drawcard was Kogan’s strong growth in customer numbers.
Data revealed that Kogan.com achieved a 15.9% increase in active customers to over 1.5 million in FY 2019. Similar results were seen from Kogan Mobile and Kogan Internet, where customer numbers also increased year on year.
The founder and CEO of Kogan.com, Ruslan Kogan, has expressed his enthusiasm over the company’s performance, noting:
‘In contrast to what has been reported as a tough retail environment, we have been able to grow the business and earnings while investing significantly in the Kogan.com customer experience and enabling our long term strategy.’
Other great figures were reported in the update, supporting Kogan’s optimism. Second half gross profit rocketed over 12% on the same period last year, and revenues for the retail company’s Exclusive Brands segment grew by more than 30% in the second half.
In addition, the launch of the White Goods & Built-in Kitchen Appliance Category in 2018 was also found to be a great success.
Can Kogan keep going?
Kogan.com remains one of Australia’s leading online retailers, even in tough trading conditions. This ability to not only stay afloat but also deliver highly impressive figures is noteworthy. But the question is: How long will they last?
I’m of the view that Kogan has plenty of steam in the engine, considering the recent launch of Kogan Marketplace. Mr Kogan called the launch a ‘transformational step for [the] business’ and stated that he had been ‘overwhelmed by the response from both sellers and customers.’
The CEO thinks that the happy times can continue into FY 2020, and right now, I believe him. Only time will tell…
For Money Morning
PS: Kogan’s only but one shiny penny in the goldmine. Check out this FREE report including the ‘Five Top Dividend Stocks on the ASX’ today. Click here to download.