AO World sales boosted by Black Friday
AO World’s sales were boosted by the much-hyped Black Friday as the online electrical retailer backed its full-year expectations.
The company, which sells households appliances such as washing machines and televisions, posted an 8.2% rise in revenue growth for the third quarter ended December 31 after a record number of customers took advantage of the sales event in the UK.
Black Friday began in the US but has quickly become a staple of the British retail landscape, with firms stretching promotional discounts across nearly two weeks.
AO World, which has its headquarters in Bolton, said offering Black Friday deals over a longer period in November was well-received by customers and improved margins, contributing 4.4% of revenue growth for the UK business.
FTSE 250-listed AO World was founded in 2000 and, in addition to the UK, also operates in Germany and the Netherlands.
Revenue for the Europe business surged 31% during the third quarter, which AO said was stronger than growth recorded in the second quarter as the group recovered from the changes made to its driver operating model earlier in the year.
Chief executive Steve Caunce said: “Against a challenging backdrop, the third quarter represents a solid performance across the AO Group. We are on track with our plans as we continue to provide a great proposition for our customers.
“I am particularly proud of the hard work of the teams in the UK and Europe in this critical trading period, which saw a record numbers of customers choose AO for their Black Friday and seasonal electricals purchases.”
Shares in AO World rose on the news and were up 3.4% to 128.4p in early trade.