Kogan.com Ltd (ASX:KGN) saw its shares plummet 11.50% in Tuesday's trading session, following the release of disappointing financial results for the four months ending April 30. The e-commerce retailer's stock price decline was driven by a significant drop in earnings and mixed performance across its business segments.

According to the company's filing with the Australian Securities Exchange, Kogan.com's earnings before interest, tax, depreciation, and amortization (EBITDA) fell by nearly 38% to AU$6.8 million, with a margin of 5%. This decline was primarily attributed to the underperformance of its Mighty Ape segment and increased marketing investments aimed at driving customer growth. The news highlights the challenges faced by the online retailer in maintaining profitability while pursuing expansion strategies.

Despite the earnings setback, Kogan.com reported a gross sales growth of over 20% for the period. This growth was largely driven by a 24% increase in the Kogan.com segment. However, the company's overall revenue for the four-month period declined by almost 1%. The contrasting performance between segments was evident, with Kogan.com's 8.4% revenue growth being offset by a decline in the Mighty Ape segment. This mixed performance across different parts of the business has raised concerns among investors about the company's ability to sustain growth and profitability across all its operations.