AO World warns on 'challenging' trading despite first quarter sales rise

Electricals retailer AO World has again warned that it faces "challenging" trading, despite reporting a rise in first quarter sales.

The firm said revenue rose 2.5% in the three months to June, even though it faced tough comparatives in the same period last year when housing sales were boosted ahead of stamp duty changes.

Website sales in the UK rose 6.2%, while sales in Europe rose 58%.

Last month AO World signalled a sharp slowdown in its UK business as the Brexit-induced slowdown in consumer spending took its toll on the retail sector.

Boss Steve Caunce said at the time that trading in the UK had become more challenging as "we began to feel the impacts of dampening consumer confidence following the UK's vote to leave the EU, subsequent price inflation and a slowdown in the UK housing market".

Chairman Geoff Cooper said on Friday: "AO World remains on track with its long-term strategic plan and the board expects results for the full year to fall within the range of market expectations.

"Customer satisfaction continues to be exceptional in all of our territories and the roll-out of further categories across the UK and Europe continues."

PA


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