Friday, August 12, 2022

AO World sees reversal of fortunes amid sales boost

AO world has spun right round, recording strong sales figures after months of under achieving (including a major profit warning in February).

The white goods e-tailer, which recently pushed into Germany, posted a 6.5% rise in UK revenue in the three months ending June 30. Orders were up 13.9% and the company enjoyed revenue growth of 11.2% revenue year-on-year.

AO said: “This growth was delivered through a period of particularly intense competitive activity in the market, compounded by the uncertainty surrounding the general election.”

Chairman Richard Rose said the electricals retailer had a strong start to July and was “encouraged by the indications of growth in housing transactions and disposable income in the broader market”. 

He added: “We are mindful of recent volatility and intense competitive activity in the market, however, our customer loyalty continues to increase and we see this coming through in repeat business. The business is operating efficiently and we continue to expect the business model to deliver as expected for the full year.

“The business is on track with its long-term strategic progress.  As we stated in our recent annual report, we continue to build brand awareness which is our key focus this financial year. We are excited to announce a new partnership with Karmarama, an innovative British advertising agency, who will head up our creative initiative moving forward and help to demonstrate our market-leading proposition to customers both old and new.”

AO is planning to grow its global footprint in the European market, likely targeting Austria and the Netherlands because they are in the near vicinity of the existing German operation.



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