The online appliance retailer had a bumper Christmas period bolstered by a 60% spike in European sales.
Companies: AO World Plc
Online retailer AO World (LON: AO.) has today released a Trading Update for the three months to 31 December, which has given the stock a boost after a bumper Christmas period.
Revenues in Q3 of its current fiscal year grew by almost 17% across the Group, with its UK operations seeing an 11% boost in Revenues. In its European operations, Revenues grew by 58% on a CC basis.
The update went on to say...
"We expect the Group's performance for the full year to fall within the range of analysts' expectations but remain cautious given the uncertain UK economic outlook."
Despite the prudent tone for the year ahead shares in AO jumped 6% to 138p on Thursday.
CEO Steve Caunce said the Group is "on track" with its long-term strategy and that Management was:
"...particularly pleased with the double-digit sales growth in our UK business, which has been achieved against a fiercely competitive environment and normalised marketing expenditure."
Stockopedia's Paul Scott gave his opinion on the Group in his Small Cap Report today...
"My opinion - selling other peoples' generic products, on wafer-thin margins, against stiff competition, just isn't a good business model."
Currently, AO has a Market Cap of £601m and is forecast to report a Net Loss of £9m from Revenues of c. £793m in FY18 which ends in March.