Kogan shares slide 7% nearing a 52-week low

Kogan shares are falling today, but they are not alone in the sector.

| More on:
A woman who used buy now, pay later receives her online shopping in the post only to find it's not what she wanted.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Kogan shares are 2.5% in the red today, after earlier seeing a 7% drop
  • Online retailers appear to be struggling on the ASX today 
  • US consumer confidence was negative, however, ABS statistics showed increased retail spending in May 

The Kogan.com Ltd (ASX: KGN) share price is having a tough day on the market today.

Kogan shares are currently trading at $2.92, a 2.5% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.65% in late trade today.

However, that dip is nothing compared to the 7.3% drop Kogan shares experienced this morning.

So what is going on with the Kogan share price?

What’s going on with Kogan?

Kogan shares are falling today, but they are not alone in the sector. At the time of writing, online retailer Temple & Webster Group Ltd (ASX: TPW) is down 7.38%, while Redbubble Ltd (ASX: RBL) shares are falling 1.09%. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is sliding 0.71%.

Despite positive retail data from the ABS, United States consumer confidence data appears to have weighed on ASX shares.

In June, US consumer confidence fell to a 16-month low, Reuters reported. The consumer confidence index dropped 4.5 points to 98.7 points.

Independent Advisor Alliance chief investment officer Chris Zaccarelli told the publication:

Right now we are at an inflection point in the economy, where actual spending and economic activity is still positive, however, consumer confidence and financial conditions, especially interest rates, are indicating a slowdown ahead.

However, retail data released by the Australian Bureau of Statistics (ABS) today paints a better picture. Total retail turnover rose 0.9% in May 2022 compared to the previous month, the figures show.

This was a 10.4% boost compared to May 2021. Household retailing rose 0.4%, department store spending jumped 5.1%, food retailing leapt 0.6%, and other retailing increased 1.5%. However, clothing, footwear and personal accessory retailing declined 1.4%.

Share price snapshot

Kogan shares have dived more than 77% over the past year. They have descended 67% year to date.

For perspective, the benchmark ASX 200 index has lost 8% in a year.

Kogan has a market capitalisation of around $312 million, based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Consumer Staples & Discretionary Shares

Why did the Coles share price just smash its all-time high?

It was a good day on the ASX for the supermarket giant. Here's what happened.

Read more »

A woman looks shocked as she drinks a coffee while reading paper.
Earnings Results

Blackmores share price has dived 10% despite revenue boost

What did Blackmores announce in its FY 2022 results?

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
Consumer Staples & Discretionary Shares

Considering Woolworths shares? Here’s why this key exec just jumped ship for Amazon

A top executive plans to leave the company next year.

Read more »

A happy couple drinking red wine in a vineyard as the Treasury Wine share price rises today
Earnings Results

Treasury Wine share price on watch after FY22 earnings beat

This wine giant has released its full year results for FY 2022...

Read more »

baby, milk, formula, bellamy's, bubs
Consumer Staples & Discretionary Shares

The A2 Milk share price has climbed 10% so far this month. What’s going on?

We check what's behind the sudden optimism for A2 Milk shares.

Read more »

share price bubble burst represented by girl with popped bubblegum on her face
Earnings Results

Redbubble share price tumbles 40% as profit turns to loss

The e-commerce company for artists reported a tough FY22 to the market today.

Read more »

A man in a supermarket strikes an unlikely pose while pushing a trolley, lifting both legs sideways off the ground and looking mildly rattled with a wide-mouthed expression.
Consumer Staples & Discretionary Shares

Why is the Wesfarmers share price smashing the ASX 200 today?

It's a good day for ASX 200 consumer discretionary shares.

Read more »

a smiling woman looks towards the camera as she tends to the engine under the lifted bonnet of her car.
Earnings Results

Bapcor share price climbs after FY2022 results

The automotive accessories and services provider holds steady in the 2022 financial year and increases its dividend.

Read more »