AO raises profit expectations despite 17.2% fall in sales

Electronics retailer AO has increased its profit expectations despite a 17.2% decline in sales at its core UK business Q3.

The company said this was in line with management expectations and that its turnaround strategy has started strongly after it lifted guidance for the year to March.

A turnaround plan was revealed in November last year to reduce costs and improve margins as a result, earnings were expected to be in the range of £30 million to £40 million rather than the previous estimate of less than £30 million.

AO said revenues were 17% lower than last year but in line with expectations.


Subscribe to Charged Retail for free

Click here to get the latest retail tech news free in your inbox each day


“We remain cautiously optimistic and yet mindful of the continuing macroeconomic uncertainty and tough consumer environment,” AO said.

The update came after AO warned on the continued impact of the cost-of-living crisis. It said in November that it will focus on profitability over growth.

AO made a statutory pre-tax loss of £12 million during the six months to 30 September, widening from £4 million during the same period a year ago. Its operating loss trebled to £9 million.

It remained in the black on adjusted EBITA basis although that slipped 11% to £9 million.

CompaniesNews

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.