Kogan.com Ltd (ASX: KGN) shares are having a strong session on Tuesday.
In morning trade, the ASX All Ords share is up 20% to $4.14.
This compares very favourably to the performance of the All Ordinaries index (ASX: XAO), which is down 0.55% at the time of writing.
Why is this ASX All Ords share rocketing today?
The online retailer's shares are rallying today after it released a trading update before the market open.
According to the release, Kogan has recorded strong sales growth, expanding operating leverage, and profitability over the 10 months ended 30 April.
The core Kogan business achieved gross sales growth of 18.2%, revenue growth of 18.1%, and gross profit growth of 19.5% during the period.
The ASX All Ords share notes that this performance was driven by growth in active customers, increased customer engagement, and continued expansion in platform-based sales.
In addition, the business benefitted from strategic marketing investment and operational cost management, which is contributing to strong operating leverage.
As a result, Kogan segment adjusted EBITDA and adjusted EBIT increased by 32% and 43.2%, respectively, over the prior corresponding period.
Another positive is that the Mighty Ape business continued to make significant progress to profitability. This was driven by aligning its strategy to the wider group.
It notes that momentum accelerated in the four months to 30 April, with its gross margin increasing 8.4 percentage points to 37.8% and adjusted EBITDA losses reducing by 52.8% against the prior corresponding period.
The company stated:
The Company delivered a Group Adjusted EBITDA margin of 8.6%, towards the upper end of previously provided FY26 guidance, which includes the impact of the turnaround of Mighty Ape. This performance was driven by strong profitability within Kogan.com, which achieved Adjusted EBITDA margin of 11.5%, together with materially improved performance at Mighty Ape in the most recent four months to 30 April 2026.
Group results look strong
In light of the above, for the 10 months, total gross sales were up 13.2% to $875.6 million.
Group active customers increased by 4% to 3.5 million, with Kogan active customers increasing by 9%.
The company's gross profit increased by 11.1% to $177.9 million after its gross margin improved by 1.9 percentage points to 41%.
This ultimately led to group adjusted EBITDA increasing 17.4% to $37.5 million and group adjusted EBIT increasing 25.4% to $26.9 million.
This is quite a turnaround for the ecommerce company after a challenging period.
Following today's gain, Kogan's shares are now up over 40% from the 52-week low they reached back in November.
The post Guess which ASX All Ords share is rocketing 20% on big news appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro 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. The Motley Fool Australia has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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