AO World battles tough market with sales hike

Online retailer AO World expects to report a 14 per cent increase in full-year sales, despite a tough market and fewer promotions.

The firm said that revenues are set to come in at £796 million, slightly above the midpoint of market expectations.

In the UK, AO World said turnover is forecast to increase 8 per cent to £680m following growth in the fourth quarter.

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

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

Last year, AO World signalled a sharp slowdown in its UK business as Brexit-induced weakness in consumer spending gripped the retail sector.

Revenue growth in Europe came in at 55 per cent as AO World said it has reached an “inflection point”.