Kogan.com has cleared out more of the surplus inventory it was stuck with - costing it millions of dollars in storage - after online shopping slowed following the end of COVID-19 lockdowns.
The e-commerce retailer announced on Monday it had $98.3 million worth of inventory on hand as of December 31, down from $137.9m at June 30 and $159.9m a year ago.
Kogan.com offered "unprecedented discounting" during the half-year to clear some of that inventory, impacting gross margins for both its exclusive and third-party brands.
"We're pleased to be emerging from a turbulent few years," CEO and founder Ruslan Kogan said on Monday.
"The ship has steadied, we have a renewed focus on the ruthless efficiency that's underpinned our entire existence, and we have doubled down on delivering great value for customers."
Kogan.com recorded gross sales of $471.1m in the six months to December 31, down 32.5 per cent.
It reported an adjusted or underlying net loss of $9.6m and a bottom line loss of $123.8m for the half.
But Kogan.com also said a "return to profitability" happened in January, when it recorded its first positive underlying earnings since July 2022, totalling $1.5m.
Mighty Ape, its New Zealand subsidiary, continued to be profitable.
"We look forward to the second half of this financial year with confidence," Mr Kogan said.
The group had 3.3m active customers as of December 31, with 404,000 subscribers to its Kogan First loyalty program.
Kogan.com plans to hike the price of that program to $99 a year, from $79, during the second half due to increased logistics costs and additional program benefits.
Kogan.com ended the half with $74m in net cash, up from $31.2m six months ago, but did not declare an interim dividend.
During the second half, the retailer plans to officially launch a new advertising platform - currently in beta testing - for its Kogan Marketplace offering.
