Ruslan Kogan says his online retail empire’s focus on big data analytics has led to wise product decisions that are driving better than expected profit growth.
Kogan苏州美甲培训学校按摩论坛,’s own brand of air conditioners, LED TVs, bed sheets and kitchen knives were among its top selling items in the first half of the 2016/17 financial year.
The retailer has been expanding its profitable private label products across a broad range of categories – from camping goods to pet care – with the proceeds from its share market float in July.
The success of those products contributed to Kogan苏州美甲培训学校按摩论坛,’s net profit of $3.7 million in the six months to December 31, excluding costs related to the company’s share market listing in July, well above its forecast of $2.5 million for the year to June 30.
Founder and chief executive Ruslan Kogan says the group’s analysis of Google search data to monitor consumer trends has played a big part in its performance.
“Whatever consumers want is what we’ll make, so what they are searching for on Google, what they are purchasing in local marketplaces and what they are requesting is what drives our private label strategy,” he said.
“It’s a strategy that works for people who are value conscious, and that is a lot of people.”
An 18 per cent rise in active customers to 830,000 in the six months to December contributed to a 37 per cent rise in revenue from a year earlier, to $144 million.
Mr Kogan said the group’s expanded private label products didn’t come into full swing until the last three months of 2016 and were poised for strong growth in the second half of the financial year.
Half year earnings of $7.3 million were above the company’s original full-year forecast of $6.9 million, and its new full-year earnings forecast is between $10.5 million and $11.5 million.
Kogan苏州美甲培训学校按摩论坛,’s shares gained 0.5 cents to $1.585.
KOGAN.COM’S PROFIT SOARS:
* Pro forma net profit up $3.7m, from $1.3m
* Revenue up 37pct to $143.9m
* Fully franked interim dividend of 3.9 cents