Online retailer AO World’s stock on the up after revealing it managed to cash in on Black Friday
- AO World’s shares were up 3.4 per cent to 128.4p in trading on Friday
- The company posted a 8.2 per cent rise in revenue growth for the third quarter
- Black Friday raised 4.4 per cent of revenue growth for AO World’s UK business
Online electrical retailer AO World’s sales were improved by the much-hyped ‘Black Friday’ discount event, allowing the firm to stick to its full-year forecasts as many other retailers flounder.
AO World’s shares rose on the news and were up 3.4 per cent to 128.4p in early trading on Friday, after a record number of customers took advantage of Black Friday’s trimmed down prices in the UK.
The Bolton-headquartered company, which specialises in households appliances including washing machines and televisions, posted a 8.2 per cent rise in revenue growth for the third quarter, which ended December 31.
AO World posted a 8.2 per cent rise in revenue growth for the third quarter
Providing Black Friday deals over a longer period in November was well-received by customers and improved margins, contributing 4.4 per cent of revenue growth for the company’s UK business, according to AO World.
Founded in 2000, the FTSE 250-listed company also operates in Germany and the Netherlands in addition to the UK.
Revenue for the company’s Europe business rose 31 per cent during the third quarter. This was a better figure than the growth recorded in the second quarter as the group recovered from the changes made to its driver operating model earlier in the year, AO commented.
‘Against a challenging backdrop, the third quarter represents a solid performance across the AO Group. We are on track with our plans as we continue to provide a great proposition for our customers’, said chief executive Steve Caunce.
‘I am particularly proud of the hard work of the teams in the UK and Europe in this critical trading period, which saw a record numbers of customers choose AO for their Black Friday and seasonal electricals purchases,’ added Caunce.
The Black Friday event originally started in the US in the 19th century, but has now become a major part of British retail, with firms offering store and online discounts across nearly two weeks.