The S&P/ASX 200 Index (ASX: XJO) rose 0.08% to 7,061 points.
Here are some of the highlights from the ASX:
Kogan.com Ltd (ASX: KGN)
The Kogan share price fell around 14% today after giving a business update.
For the three months to 31 March 2021, gross sales went up 47% and revenue rose by more than 65%. Gross profit grew by more than 54% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 24%. Kogan active customers went up by 77% to 3.22 million.
The ASX 200 share said that it has continued its long-term strategy of investing in technology, brand awareness, logistics capability, platform improvements and Kogan First membership benefits to lay the foundation for future growth and provide ongoing improvements in the customer experience.
However, in the period to March 2021, customer demand fluctuated below the levels seen in the prior nine months to December 2020. As a result, the company was required to store larger amount of inventory, after ordering a high level of product in reaction to the demand seen in the first half of the financial year. This resulted in high storage expenses and demurrage fees.
The company has been increasing its promotional activity in response to the above inventory problem.
At the same time, the company is observing price inflation of many products currently being planned for reorder in advance of the peak Christmas trading period, together with inflation in international shipping costs.
Accent Group Ltd (ASX: AX1)
The Accent share price rose by around 11% after the shoe retailer announced an acquisition.
Accent announced that Brett Blundy is going to re-join the board. The business also announced the acquisition of the Glue Store retail business and the whole sale and distribution brands business of Next Athleisure.
The acquisition is going to cost a total of $13 million. Glue Store is an Australian youth apparel, shoe and accessory retailer offering an aspirational range spanning global street, fashion and sport cultures.
Glue Store’s product range includes leading domestic and global brands and a portfolio of strong and growing owned vertical brands.
The retail business has a network of 21 stores and an integrated online site. It’s generating $90 million of annual sales as well as $16.6 million of online sales.
Telstra Corporation Ltd (ASX: TLS)
The Telstra share price went up 0.3% today after the ASX 200 shared its success after investing $277 million to secure 1000 MHz nationally in a 26 GHz spectrum auction.
Telstra CEO Andrew Penn said that the new mmWave spectrum would dramatically increase capacity and speeds for Telstra’s customers.
Mr Penn said:
High speed connectivity is critical to Australia’s future prosperity and our aspirations to be a world leading digital economy. It has become central to all our lives – the way we live, work, keep ourselves entertained and stay connected, and more and more 5G will be at the heart of that.
mmWave spectrum is especially good at providing high-speed mobile broadband in high-density areas, such as built up cities and towns, train stations, sport stadiums and other locations with a high concentration of people using their mobile devices.
Telstra’s 5G technology now covers almost two-thirds of the Australian population and is on track to reach 75% by the end of June 2021.