Kogan 1HFY26 Results Investor Webinar

Kogan's Global Squeeze

Australian online retail has consolidated sharply around global giants. With Wesfarmers' Catch and Woolworths' MyDeal both shuttered in 2025, Kogan.com remains the sole significant local marketplace player. Yet consumer data from Pattern's 2026 report shows the shift: Amazon now reaches 60% of shoppers, up 3.45 points year-on-year, while Temu and Shein have captured 47% and 30% respectively through aggressive pricing and rapid delivery improvements.

Kogan itself has lost ground, with only 15% of Australians shopping its platform, down six points. The company has responded by ramping up marketing to exploit the vacuum left by departed locals, driving strong Australian gross sales growth in electronics, home goods and DIY categories where it retains modest footholds of 8%, 7% and 5%.

The drag comes from Mighty Ape. Acquired in 2020 for roughly A$122 million, the New Zealand business suffered platform migration setbacks and weak local trading, culminating in the FY25 impairment that contributed to a A$39.5 million statutory loss despite group gross sales rising 15% to A$930.9 million. Early FY26 trading showed the same pattern: Mighty Ape losses of A$3.2 million offset Australian progress, cutting group adjusted EBITDA 31% to A$10.1 million for July-October.

Management has signalled the inventory reset will conclude by half-year end, with Mighty Ape expected to swing positive in the second half. That timeline aligns with the February 23 release, which will also clarify whether heavy Australian marketing spend can sustain share gains without further eroding margins. Kogan's broader portfolio—spanning private-label goods, telecoms, insurance and a new streaming service—offers diversification levers few pure-play locals retain, but the economics favour scale that globals possess in abundance.