Online electricals retailer AO World has said it was on track to meet full year forecasts following continued revenue growth over the Christmas period.
In its third quarterly update ending December 31, the retailer said total revenue grew 16.6 per cent year-on-year and while it expects its full year performance to be within analysts’ expectations, it remains cautious given the “uncertain UK economic outlook”.
AO World’s UK business experienced revenue growth of 11.4 per cent and Ao.com revenue was up by 11.2 per cent year-on-year.
Meanwhile its European market booked a 58.4 per cent year-on-year spike in revenue, on a constant currency basis.
“We have performed well over our peak period delivering further sales growth across all our territories and are on track with our long-term strategy,” chief executive Steve Caunce said.
“We are particularly pleased with the double digit sales growth in our UK business, which has been achieved against a fiercely competitive environment and normalised marketing expenditure.
“Our customers in the UK benefited from our Black Friday deals this year over a two week period enabling us to manage demand more effectively and deliver an even better experience for customers.
“We are encouraged by the sales growth in our newer categories and we have continued to deliver excellent customer service throughout the period across the business.
“Our Europe operations are progressing in line with our plans and we are pleased with the strong growth achieved, given the limited above the line marketing expenditure.
“Our brand is attracting both new and repeat customers in mainland Europe and customer satisfaction remains high.
“Looking ahead, although we need to be mindful of the uncertain economic outlook (particularly in the UK), as long as we are relentless in our focus on making things easy for our customers, we can be confident that they will continue to choose the AO Way.”