Shares in Kogan.com (ASX:KGN) have tumbled today after it reported a decline in sales during the March quarter.
The online retailer’s gross sales fell 3.8 per cent from the prior year period after consumer demand did not meet expectations. Kogan.com said the moderation in gross sales during the quarter was largely driven by “general market factors”, including a slow-down in eCommerce activity in Australia.
However, the compound annual growth rate (CAGR) in gross sales from the prior year period rose 19.4 per cent, and the CAGR in gross profit rose 20.2 per cent.
Over the coming year, the company said it will be recalibrating its operating costs in line with current growth levels to support a return to the historical operating margins previously generated.
“While market conditions are challenging at present, the foundations laid over the last 16 years are holding us in good stead. Our current focus on recalibrating inventory levels and core operational costs is aimed at returning the Company to its historical margins and also to position the business for its next phase of growth,” said chief executive officer Ruslan Kogan.
Shares in Kogan.com (ASX:KGN) are trading 11.5 per cent lower at $4.02.