Online electricals retailer AO World increased its sales by 2.5 per cent in the second quarter, driven by a sharp revenue rise in Europe.
This was despite facing a tough comparison with the same period last year when housing sales were up ahead of the stamp duty changes and demand for white goods was high.
Direct UK website sales rose 6.2 per cent in the three months to June in the face of a slowdown in the major domestic appliances market, while sales in Europe rose 58 per cent.
Digital growth: Online electricals retailer AO World increased its sales by 2.5 per cent in the second quarter, driven by strong revenue rises in Europe and the UK
Total UK revenues were up 2.5 per cent, including third party sales, reflecting AO’s move to refocus on its central brand.
However, the company warned that it faces ‘challenging trading’ after last month signalling a sharp slowdown in its UK business as the Brexit-induced slowdown in consumer spending took its toll on the retail sector.
Boss Steve Caunce, who replaced founder John Roberts in February, said at the time that trading in the UK had become more challenging as ‘we began to feel the impacts of dampening consumer confidence following the UK’s vote to leave the EU, subsequent price inflation and a slowdown in the UK housing market’.
Chairman Geoff Cooper said today: ‘AO World remains on track with its long-term strategic plan and the board expects results for the full year to fall within the range of market expectations.
‘Customer satisfaction continues to be exceptional in all of our territories and the roll-out of further categories across the UK and Europe continues.’
He added: ‘Our momentum is encouraging and we remain confident in the delivery of the plan we set out at our capital markets day in February.’
AO expects full-year results to be in line with market expectations.
The company will announce half-year results on November 21.
Dixons Carphone booked a healthy leap in profits in June as demand for electricals in the UK held up well.
The company posted a 10 per cent rise in bottom line profits to £501million for the year to the end of April.
Like-for-like sales rose by four per cent over the year, with a two per cent rise in the fourth quarter.
AO controversially arrived on the UK stock market in 2014, with a very high valuation placed on its shares as the flotation price was chased up by optimistic investors.
Shares in the group have plummeted 62 per cent since its initial listing, resulting in it being demoted from the FTSE 250, and they fell again last month, this time by more than 10 per cent, when it revealed a widening of full-year losses.
However, the share price was up 0.53 per cent in early trading today.