AO reviews German business as sales drop

AO
UK sales were “broadly stable”
// AO reviewing options for it German division
// Its German business suffered a 24% decline in sales

AO has said it will consider options for its German business after reporting issues that have affected revenues over the last nine months.

The electricals retailer recorded a 45% increase in group revenues in the third quarter to December 31 on a two-year basis with a drop of 14% year on year.

UK sales were “broadly stable” compared with the same period last year while its German division suffered a 24% decline.


READ MORE: AO warns of “poor availability” due to HGV driver shortage


AO said a number of issues have affected sales in Germany, including competition in the online market, an increase in digital marketing costs and supply chain constraints.

“The board is focused on maximising shareholder value and, as a result of the aforementioned factors, the group has decided to commence a strategic review of its German business, which will evaluate a range of options,” AO said.

“The results of the review will be announced in due course.

“We remain confident about AO’s long-term growth prospects, driven by the strength of our proven business model, the quality of our customer proposition and the long-term market trend towards online migration.”

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