Saturday, August 17, 2019

AO World to enter Germany following sales surge


Pureplay online electrical retailer AO World has enjoyed strong sales growth since it floated on the stock exchange in March.

The retailer, which benefited from Comet‘s 2012 administration, saw sales shot up 45.4 per cent for the year but saw sales slow in the fourth quarter of its financial year.

Revenue rose 40 per cent to £384.9m per cent, driven by sales on its flagship site It said core earnings, in line with market forecasts, rose to £11.2m.

It will begin trading in Europe‘s largest economy Germany this year, which marks its first foray into Europe.

Matt Piner, research director of Conlumino, commented: “In much of what AO says there are more than a few echoes of the path ASOS, another pureplay online retailer, took in clothing, using its high tech approach to disrupt the category and then taking that momentum abroad.”

He added: “However…gains in the UK are likely to become a lot harder from this point in. With Europe also a complex prospect it could be a bumpy ride ahead.”