The issue for Kogan (KGN, the online retail store) remains that of excess inventory in a slowdown for retail, and online retail in Kogan’s target market more specifically, in the face of a shift in the share of wallet back towards services, and in person events/activities, as the pandemic fades, and life returns to normal.
That inventory unwind still has much further to go, we would suggest.
Note the dollar inventory in the graph above is from the December result, and from the update yesterday, still a similar number, and, based on the EBITDA comment below, is not looking especially profitable.
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