Kogan.com Struggles To Appease Matt Blatt Customers | KOSEC

Industry News

& Articles

Kogan.com Struggles To Appease Matt Blatt Customers


Turbulent macroeconomic developments across the world have created unique circumstances for Kogan.com (ASX: KGN) to prosper over the past couple months, with a recent acquisition of Matt Blatt expanding the range of products available on their website. Ecommerce has seen an exciting increase in traffic as people stay safe at home due to COVID-19. This may have long-lasting beneficial implications for the sector as more people have adopted digital payment platforms and have adapted to a ‘new normal’.

Fifteen Matt Blatt showrooms were closed in late March, yet the smaller brand will be kept alive. This move will help KGN differentiate themselves from Amazon and eBay who opt for global brands. Matt Blatt has historically had AUD47 million in annual sales, of which 20 to 25 per cent was through their online store. With a total of 1.95 million sales with 62,000 new active customers over March and April, the trajectory of KGN during this time looks very positive. A spike in working from home equipment, home gym equipment and cooking compounds this outlook. Since these developments, KGN shares more than doubled, going up from around 4 dollars around the end of March and now nudging the 11 dollar mark.

Matt Blatt made replica furniture of global brands but in recent years tried the same trick with local Australian designers and sparked controversy. More recently, Matt Blatt seems to have blown up relations between KGN and their acquired customers. Hundreds had paid for goods that were never delivered as Matt Blatt went into administration on May 22. Allegedly, the brand had orchestrated to leave debts behind via liquidating their assets a week after the company sold its intellectual property to KGN, as well as the material stock being sold in April and May. Adam and Deborah Drexler, the founders of Matt Blatt, have not commented on the situation. Consumers have become frustrated with KGN, with a sentiment that they should deal with Matt Blatt problems. Depending on how these complaints are handled could see another change in stock price.

Teething issues aside, KGN's financials tell a story of a fundamentally sound, efficient company with enough stamina to sweat unexpected problems. KGN’s cost of doing business (CODB) was just 6 per cent in December, and the AUD4.4 million used to acquire Matt Blatt was funded through cash reserves. There is a trend of increasing earnings per year, increasing equity percentage, as well as a stable number of shares outstanding; providing undiluted value for investors. Revenue, operating margin, net profit, and the average price to earnings, are all trending positively, which makes KGN a promising opportunity.

Diving deeper into the macroeconomic impacts on KGN, a focus on April’s financial results, one of the most volatile months due to COVID-19, will point to how the company has thrived. Gross sales grew by 100 per cent, with gross profit growing by 150 per cent. Additionally, adjusted EBITDA grew by 200 per cent and with customers growing to 1,948,000. Despite recent issues in acquisition, KGN has seen incredible growth with a strong fundamental base.

By Timothy Geldard 

Click here for a 7 days access to our Lotus Blue Portal.

Comment on this company

Latest Stories

Iberdrola Receives FIRB Approval for $864m Infigen Takeover

As of the 7th of July, Iberdrola’s takeover bid for Infigen Energy Limited has received.. …

Magellan Financial Releases Funds Under Management Update

Since Magellan Financial suffered its worst monthly net outflows in April, the group was pleased to witness a.. …

Qantas and Afterpay Join Hands For Points

As of the 6th of July, Qantas Airways Limited (ASX: QAN) and Afterpay Limited (ASX: APT)…..

More for you

Infigen Energy Reiterates Stand Towards Takeover Offer

The battle surrounding the takeover offer for Infigen Energy continues.. …

Qantas Opens Share Purchase Plan to Retail Investors

Qantas Airways Limited (ASX:QAN) has on 02 July 2020, opened its Share Purchase Plan to.. …

Cochlear Successfully Obtains FDA Approval for Four New Products

Cochlear has today, 03rd July 2020, been given the green light from the US Food and Drug… …

WiseTech CEO Sells $46m of Shares

WiseTech Global Ltd (ASX: WTC) chief executive and founder Richard White has sold.. …

Woolworths Faces Scrutiny from Media Regulator

In its recent trading update announced last week, Woolworths Group revealed the additional.. …

Brickworks Announces 20-year Deal with Amazon

As of the 30th of June, Brickworks Limited (ASX:BKW) has announced that it has entered.. …

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.



KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.


Latest TV Commercial