A sharp focus on the AO World (AO.) brand has helped the electrical retailer boost UK sales growth by 2.5% between April and June 2017 despite difficult trading conditions.
AO World has had a tough year as a softer trading performance has been affected by a tougher white goods market.
The company has reduced sales through third party websites in a bid to boost its own branded sales to more normal levels.
In today's update, the retailer warns that the UK trading environment remains ‘challenging’.
Year to date, AO’s share price has slumped nearly 34% to 120p as it racked up losses and faced the fall-out from UK consumer spending squeeze.
Numis analyst Andrew Wade says the UK growth rate is at the top end of expectations and that the firm continues to ‘improve its business, expand its range and take market share.’
JP Morgan Cazenove analyst Georgina Johanan is more cautious until there is ‘clearer visibility on the UK consumer outlook.’
