>
Kogan suffers a staggering $24 million loss, but claims the worst is over despite leaving dozens of luxury furniture customers furious.
- Kogan posted $23.8 million in losses
- CEO says company is ‘on track’ for profit
- Brosa customers charged huge shipping fees
Online retail giant Kogan claims it is ‘on track’ to return to profit despite suffering losses close to $24 million.
The e-commerce retailer overinvested its shares in the previous fiscal year in an attempt to combat supply chain issues caused by Covid-19.
The company previously released its results for the six months ended December 31, with revenue falling 34.3% to $275.6 million, while its statutory losses rose to $23.8 million from 11.8 million dollars from a year ago.
Kogan told his investors Monday that he was forced to discount heavily and sell some products at a loss as he worked to clear his overstocked warehouse.
It also posted a decrease in its warehouse inventory of $98.3 million at the end of December, down from $159.9 million in the six months to June 30.
Kogan.com founder and CEO Ruslan Kogan (pictured) said the company is ‘on track’ for profit despite posting a $23.8 million loss in the six months since June 30 of 2022.
Kogan.com founder and CEO Ruslan Kogan told the Australian Financial Review the company would top its losses with buyers buying the latest technology as they spend more time at home amid the rising cost of living.
“If you want the latest TV that can have all the latest apps, it can’t be one from three years ago,” Kogan told the publication.
“So obviously people are spending more time at home if they have cost of living pressures, and going out less, having a TV that has the latest apps and the best viewing quality becomes more and more important. ‘
He said the company was “on track” to profitability after its inventory explosion and is keeping value-focused buyers at the forefront.
Kogan said he was working hard to win back investor confidence and give them “exactly what we’ve said we’d do over the last year.”
Kogan returned to profitability in January after posting profits of $1.5 million for the month.
The company is also trying to ship orders from luxury furniture retailer Brosa after it bought the company when it went into liquidation.
Brosa went into liquidation on January 31 after going into voluntary administration late last year.
Kogan was hailed as the “white knight” when he bought Brosa’s business after its liquidation and promised to deliver unfulfilled customer orders (Brosa Melbourne storefront)
The collapsed business reportedly owed $24 million, including $10 million in unfulfilled orders.
Kogan bought the remnants of Brosa’s business for just $1.5 million and struck a deal with managers to deliver unfulfilled orders if stock was found in warehouses.
He was dubbed a ‘white knight’ for his rescue, but customers have criticized Kogan while still waiting for orders to be delivered and some complain the online retailer is charging them shipping fees for items they already paid for.
Daily Mail Australia understands that some customers were sent a link and given 14 days to pay the “reasonable” postage cost.
Insolvency firm KordaMentha, which acts as Brosa’s administrator, has emailed several clients that their previous “allocated stock” is now unaccounted for and delivery will not take place.
A Melbourne customer, who did not want to be named, told Daily Mail Australia earlier this month that half of his $7,500 order was classified as “unallocated”, including parts for a modular sofa.
‘They [Kogan] He sent me an email saying that half of the sofa is not assigned, but we will send him what is assigned,” he said.
‘Why would I want half a sofa? I asked for a refund or at least a credit and I’m still waiting for an answer.’
Daily Mail Australia has contacted Kogan.com for comment.
Audrey said the treatment she received from Kogan was ‘absolutely disgusting’