Kogan (KGN) ready to put inventory bugs behind him

Ruslan Kogan says his online marketplace, Kogan.com, is ready to overcome mistakes made on inventory levels amid the pandemic, as the company goes after frugal shoppers amid a cost-of-living crisis.

Kogan moved on to a statutory loss of $35.5 million for 2022 and its adjusted earnings dropped to $18.9 million as the company grappled with excessive inventory levels and year-round carrying costs. The adjusted loss figure is $2.9 million.

Ruslan Kogan said the online retailer is going ahead after inventory problems.

Ruslan Kogan said the online retailer is going ahead after inventory problems.Credit:Louis Douvis

Kogan said the company had incorrectly bet that the trend of rising sales in the first year of the pandemic would continue, prompting the company to expand its range and inventory more than necessary.

“We made some bad decisions, we will face them, we will fix them and we will move on,” he said. Sydney’s morning herald Y Age.

The platform returned to profitability in the last quarter of the year, and Kogan hopes cost-of-living pressures will now drive more shoppers to the site as they embark on detailed research into the best prices for purchases.

“While they might have [previously] splashed on the big brands, when things get better, they will compare and investigate,” he said.


“The more customers are frugal, that’s when our business shines.”

The company told investors on Tuesday that it is now focused on operating efficiency and has taken steps to cut costs, including reducing the range of underperforming product categories.

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