Kogan has announced that its Q1 revenue has grown to almost 50 per cent and used this opportunity to criticize Harvey Norman for its ‘ageing business’.
According to the company, its Q1 FY11 revenue ‘skyrocketed’ up 48.12 per cent on the previous quarter.
“The same period saw manufacturer LG post an operating loss of $164 million and retailer Harvey Norman post a like-for-like sales decrease from Q1 FY10 of 0.6%,” said the company.
This growth in revenue and market share has allowed Kogan to take
its brand to the UK in mid-November.
“Bricks and mortar retailers like Harvey Norman appear to be blaming the foreign exchange markets for their poor results, but this is just a smokescreen for the real underlying issues associated with their business model. Any economist will tell you that a rising Australian dollar should be positive news for retailers of imported goods like Harvey Norman,” said Ruslan Kogan, CEO of Kogan.
“In the same period that Kogan saw record growth, Harvey Norman’s ageing
business recorded a huge downturn in profit of 30.8% on the
corresponding prior period. Gerry’s complaining about price deflation with customers spending less on technology as companies like Kogan drive prices of TVs down. He should be more worried about improving his own business and streamlining it to take advantage of the high Australian dollar and improve value for customers,” continued Kogan.
“Buying Clive Peeters was a huge mistake by Gerry Harvey. My mother always taught me that two wrongs don’t make a right. Combining one ageing business model with another won’t solve Gerry Harvey’s problems. I’m happy to give him my mother’s email address if he’d like some common sense business advice,” concluded Kogan.