Online shopping trader Kogan has reported a surge in sales during April and May even as coronavirus lockdowns restricted activity in the retail sector.
Kogan said in a fourth quarter progress report gross sales were up more than 100 per cent from a year ago while gross profit improved more than 130 per cent for the two-month period.
Kogan’s number may have been partly helped by its acquisition of furniture trader Matt Blatt in May.
Its results are a contrast to the disastrous April trading figures for the retail industry.
Retail spending fell by a record 17.7 per cent in April, figures from the Australian Bureau of Statistics revealed on Thursday, as job losses, lockdown measures and economic impact of COVID-19 were fully realised.
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Kogan looks to have benefited from a surge in online spending during the COVID shutdown.
Online sales soared 26.4 per cent in April, ABS data showed.
The online retailer added 126,000 active customers in May alone, taking total active customers to over 2 million.
Analyst Tim Piper of the Royal Bank of Canada’s Sydney branch said the increase in customers was a solid indicator of sales momentum ahead.
The business was in a great position to capitalise on increasing online spending and was outperforming the bank’s forecast, Mr Piper said.
Kogan shares were up 8.25 per cent to $12.34 at 1132 AEST and have jumped more than 50 per cent since January 1.
