Thursday, October 1, 2020

AO posts revenue rise but warns of economic outlook


AO World recorded increased revenues in its third quarter, but the online electricals retailer issued a warning about the final quarter given the uncertain UK climate.

The warning, in which chief executive John Roberts said he was “mindful of the uncertain economic outlook”, led to shares by AO to drop by eight per cent today.

The retailer posted a 12.3 per cent rise in total revenue for quarterly period ending December 31 and said it still expected to meet guidance for the fiscal year.

READ MORE: AO warns of 2017 price rises ahead of expected record sales for Black Friday

However, UK revenues rose 8.9 per cent in that same period, compared with a year earlier, below analyst predictions for growth of roughly 10 to 16 per cent.

Meanwhile, European revenue increased by 28.4 per cent year on year.

“AO continues to make progress on its long term plan; delivering sales growth across all categories and territories,” Roberts said.

He added: “We performed well over our peak period, particularly through Black Friday.”

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