The company has been working to unwind inventories over the past year since admitting to overinvesting in stock during the throes of the pandemic,only for the lockdown-fuelled e-commerce boom to end.
Ruslan Kogan said the group’s focus on driving efficiencies within the business meant the company was “more agile than ever”as cost pressures hit households.
He said that while it was difficult to predict future consumer spending conditions,the company’s mobile phone plan business,Kogan Mobile,and its delivery subscription business,Kogan First,were performing strongly as shoppers hunted for value.
“In this environment,people are looking to save money ... Kogan Mobile has returned to growth,and a big part of that is people saying,‘Now that there are cost of living pressures,I should take a look at my phone bill,’” he said.
Kogan told investors in an update lodged with the ASX that the company’s focus on value meant it was well placed in the current environment.
“We know millions of customers are struggling with cost of living pressures,and we’ve been able to
recalibrate our business to better support them in these times,” he said. “Our focus on making the most in-demand products and services more affordable and accessible has never been more important.
“The value millions of customers get from shopping with the Kogan.com Group is precisely why we exist,and we’re pleased to be in a position of strength and stability to best help them.”