Kogan has flagged an earnings dive of $42.7 million for FY22 in a trading update.
The online retailer expects $19.1 million in underlying earnings before interest, tax, depreciation and amortization, 69% lower from the year before.
Gross sales improved marginally by just 0.1% to $1.18 billion, while gross profit fell by 9.4 per cent to $184.6 million.
This is down from $203.7 million the year prior.
Founder Ruslan Kogan said a turnaround strategy is in the pipeline.
“We're not resting on our laurels. We are making the business leaner to enable us to pass on cost efficiencies to customers in the form of lower prices.
“A leaner company means we discontinue parts of the business that are not delivering value to customers or shareholders, and also gives us the flexibility to respond to significant ongoing changes in the macro environment.”
The platform has also reported growth in its customer base, with group active customers growing to nearly 4 million in the 12 months to 30 June.
This is in addition to growth in its 'Kogan First' loyalty program, which has jumped 210% since FY21 to over 372,000 people.
Kogan said the consumer appetite for value will be a key opportunity moving forward.
"Times are changing. In uncertain times, people don't want to alter their lifestyle but they are happy to shift the way they shop. We know that in an environment where great value becomes even more important, Kogan.com serves an important need."
"Our Business was built for this. Efficiency and speed has been at the core of how the Kogan.com team operates for 16 years now. We're honoured that there are millions of Active Customers in the Group that have seen the value we provide."
Kogan has net cash of $31.2 million, up from $12.8 million at the end of FY21.
Total inventories were $161.1 million, with $139.2 million in warehouse and $21.9 million in transit.
This reflected a “significant unwinding” of inventories from $227.9 million at the end of FY21.
New Zealand retailer Mighty Ape offset the decline in sales for the Group, reporting a 95.8% increase in gross profit and 104.5% increase in gross sales year on year.