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Kogan.com has disappointed its shoppers to such an extent that it has been shamed as the most complained about company in January 2019. After this news came out by renowned media platforms, Koganâs stock price nosedived to the day-low of $4.050 on 27 February 2019, compared to the previous close of $4.140.
It has been heard that NSW Fair Trading registered 70 complaints against Kogan.com Ltd (ASX:KGN) in January mostly relating to the quality of its products. The number represents more than 2 fold increase in complaints as compared to 33 complaints in January 2017 and none in January 2016. [optin-monster-shortcode id="swikrbu1d9j9aq0o4cko"]
Further, it has been seen that Koganâs dissatisfying product and services have even surpassed technology giant Apple which was the second most complained about company in January as per the market news.
Koganâs doldrums story did not stop here! It translates the online retailer sitting at the top of the complaint list of NSW consumer rights regulator as much as four times since May 2017. It included 36 complaints in October 2018, 42 complaints in July 2018, 27 complaints in December 2017 and now 77 complaints in the most recent January 2019.
The company operates 18 exclusive private label brands in a wide range of categories including appliances, toys, consumer electronics and hardware among others. Beside hampering the quality of products, Kogan.com is accused of not being able to meet the delivery times, refunds and warranty claim.
However, as mentioned by Australiaâs leading media companies, Kogan.com has received satisfactory feedback from its shoppers. The company believes that in delivering tens of thousands of people across the nation, an iota of an audience may experience issues. But the Group continues to offer its support and work closely with the affected audience to resolve outstanding problems.
The technology sector dominant Apple, Samsung electronics and Harvey Norman have been other top complaint about companies in consumer discretionary products. As a result, the regulatory watchdogs have now decided to take a grip on whitegoods retailers, placing them in the list of enforcement priority this year.
In the recently release half-yearly results, Kogan reported 12.9% increase in its Gross Transaction Value to $277.3 million for 1HFY19, reflecting the gross sales of Kogan Retail and the gross transaction value of New Verticals. Whereas, Revenue increased 10.6% to $231.8 million delivering a gross margin of 19.5%, up from 19.4% in 1HFY18.
As at 31 December 2018, the Group recorded 1,542,000 Active Customers, an increase of 32.2% year-on-year. Moreover, the fully franked interim dividend of 6.1 cents per share remains due for payment on 8 May 2019 with the record date of 23 April 2019.
As stated above, KGN stock price has dipped down to $4.050 in todayâs trading session. However, the market favoured the stock price to recover from its day-low to close at $4.110, down 0.725% on the previous close.
The stock last traded at a Price to Earnings multiple of 29.360x with a market capitalisation of $387.95 million. Over the past 12 months, the stock has gone down by 55.48% despite the upsurge of 34.42% in the past three months.
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