Dick Smith instantly pulls in $6.5 million for Kogan

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Dick Smith instantly pulls in $6.5 million for Kogan
Ruslan Kogan

Dick Smith, the website now owned by Kogan, has raked in $6.5 million in sales in its first two months of operations.

Kogan acquired the website from the failed brick-and-mortar retailer in March for just $2.6 million after Dick Smith fell into administration. Dick Smith reopened two months later as an online-only store akin to Kogan's own website.

The acquisition included Dick Smith's branding, website, customer database and 1.2 million active subscribers. Kogan also revealed that Dick Smith had 32,000 active customers since launching in May.

Kogan and Dick Smith's combined subscriber base topped 3.7 million for the year, and 702,000 active customers.

Kogan listed on the Australian Securities Exchange in July to raise $50 million through an initial public offering, giving it a market capitalisation of $170 million.

In its maiden financial report since becoming a public company, Kogan reported revenue of $211.2 million for the year ending 30 June, an increase of $10.9 million from the previous year. Kogan returned to profit with $800,000 for the year, up from a $300,000 loss in financial year 2015.

Kogan's other new business, Kogan Mobile, was relaunched last year on the Vodafone 3G and 4G network. The telecommunications business grew its revenue by $100,000 to hit $500,000 for the year.

Chief executive Ruslan Kogan said third-party domestic products out-performed expectations off the back of expanded vendor partnerships, including Microsoft and Dell. Third-party domestic products now count for 24.2 percent of Kogan's sales, compared to 38.6 percent for third-party international and 37.2 percent for private-label products.

“The above-forecast expansion of the third-party domestic product division demonstrates the increased propensity of third-party brands to choose Kogan.com as an online retail channel partner," said Kogan.

"Our ability to instantly talk to over 3.7 million Aussie consumers provides a compelling platform for leading consumer brands."

Kogan's shares were at their highest point since July, trading at $1.69 at time of writing. Shares were originally sold for $1.80 during the IPO.

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