AO World to post 14% sales but operating losses continue

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AO World update

AO World has revealed full year expectations of double-digit sales growth despite an increasingly tough retail market.

The online electronics retailer said it expects full year sales to rise 14 per cent to £796 million, just above analyst expectations.

It added that it had reached an “inflection point” in Europe, driving growth of 55 per cent with further growth expected.

Its UK arm also reported an eight per cent growth to £680 million thanks to a boost in the fourth quarter.

This comes despite reporting a sharp slowdown in trading last year as it struggled to offset pressures caused by Brexit.

Despite the positive growth, AO World still expected to post an adjusted operating loss of £4 million.

“Growth in the fourth quarter was achieved in what remains a competitive market with limited advertising spend,” the retailer said.

“When compared to this period in the previous year we have undertaken relatively less promotional activity which has supported gross margin.”

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