21st Jul 2016 07:44
LONDON (Alliance News) - Online household appliance retailer AO World said on Thursday it remains on track with its "long-term strategic plan" after a positive first quarter ended June 30.
Year-on-year growth in AO branded UK sales were up 29%, and total UK revenue growth was up 25%. AO World said this was driven predominantly by "improving brand recognition". The company said "momentum" in the UK continued during its first quarter, particularly with gross margin and marketing costs.
In Europe, the online retailer said progress was "pleasing". Revenue in euros doubled year-on-year, with "further advances" made in gross margins. AO World's expectations for the business in Europe over the financial year remained unchanged as a result.
AO World said its Netherlands roll-out continues and it has commenced deliveries from its regional distribution centre in Bergheim, Germany. The company expects the German unit to be fully operational by the end of its second quarter, and anticipates accelerated growth over its second half of the financial year as a result.
While the company said it is "mindful" of recent economic uncertainty following the UK's vote to leave the European Union in June, AO World's expectations for the UK business over the financial year remain unchanged.
AO World's half year results for the six months ending September 30 will be announced on November 22.
Shares in AO World were up 5.5% at 141.81 pence Thursday morning, the best performer in the FTSE 250.
By Lucy Heming; [email protected]
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