Kogan.com was a stand-out performer amid the doom and gloom of the retail space with several highlights from its inaugural full-year result as a listed company.

On the back of three earnings upgrades leading into the result, Kogan again provided upside surprise for investors delivering EBITDA ahead of guidance, very strong EBITDA cash conversion of +80% and positive commentary around current trading conditions.

We believe the much-vaunted arrival of Amazon in Australia could be a positive for a retailer such as Kogan as it will provide an additional channel into which Kogan can sell its private label offering.

Furthermore, Kogan has recently announced new lines of business including internet and insurance. These verticals will be high-margin businesses as Kogan will act more like an agent using existing distribution channels for the sale of these products ensuring a large proportion of sales will drop straight through to the bottom line (like in Kogan Mobile, where the gross margin is 100%).

We expect further commentary from management in the near term to confirm the strong market position of Kogan and have retained our position despite the recent strong share price performance (+100% since June 2017).