THE RETAIL BULLETIN - The home of retail news
Click here
Home Page
News Categories
Commentary
Department Stores
Electricals and Tech
Entertainment
Fashion
Food and Drink
General Merchandise
Grocery
Health and Beauty
Home and DIY
Interviews
People Matter
Retail Business Strategy
Property
Retail Solutions
Electricals & Technology
Sports and Leisure
Christmas Ads
Shopping Centres, High Streets & Retail Parks
Retail Events
People in Retail Awards 2024
The Future of The High Street 2024
Retail HR Summit
THE Retail Conference
Retail HR North 2025
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
AO World posts full year revenue drop

AO World saw its revenue decline by 6% to £1.56 billion in the 12 months to 31 March against strong prior year comparatives when the company… View Article

RETAIL TECHNOLOGY NEWS

AO World posts full year revenue drop

AO World saw its revenue decline by 6% to £1.56 billion in the 12 months to 31 March against strong prior year comparatives when the company was boosted by more people buying online during the Covid-19 pandemic

On a two-year basis, group revenues increased by 52%.

During the year, the electrical appliance retailer attracted 1.5 million new customers and saw an uplift in post-Covid repeat purchase rates.

It said UK revenues were resilient in the first half of the period, despite the constraints of driver challenges and ongoing supply chain issues. However, customer demand progressively weakened in the second half which meant that revenues were down 5% year-on-year, but up 52% on a two-year basis.

In Germany, revenue was constrained by post-Covid shifts in consumer behaviour and an increase in online competition as customers returned to stores more than expected. AO’s revenues in the country declined by 12% year-on-year, but grew by 54% on pre-Covid levels two years ago.

AO said group adjusted EBITDA is expected to be around £8 million for the year.  The company said it was informed in March of  higher warranty cancellations than in previous years  as customers responded to the rising cost of living.

AO added: “While the picture has subsequently improved, data received subsequent to this trading update and prior to the full year results announcement scheduled for later this summer could result in a reassessment of the carrying value of the contract asset, which could lead to a material impact on FY22 profits.”

The company is remaining cautious on its revenue and profit outlook in the near term due to volatile market conditions, cost pressures, supply chain issues and the rising cost of living. As a result, it will be focusing on cash generation and optimising its cost base in the coming year.

Subscribe For Retail News