(Reuters) -British electronics retailer AO World on Tuesday raised its annual profit expectation for the second time in three months after reporting robust first-half revenue and profit growth driven by market share gains in its core consumer-focused business.
The retailer, which sells appliances like tumble driers and TVs, now expects full-year adjusted pre-tax profit to be near the top of its 45 million pounds ($59 million) to 50 million pounds range for the year ending on March 31. In September, it raised the lower end of its profit forecast.
“We are pleased with the group’s progress in the first half, with trading slightly ahead of our previous expectations, despite the inflationary headwinds,” the company said in a statement.
Recent updates from major retailers have revealed nervousness about the impact of Chancellor of the Exchequer Rachel Reeves’ upcoming budget on consumer sentiment, particularly for more discretionary purchases.
Despite the dip in broader consumer confidence, AO World has continued to draw a broad base of shoppers, aided by discounted pricing through its membership programme and efforts to expand its range of products.
In the first half, the company ramped up advertising and added more than 900 products, helping drive a 12% rise in its business-to-consumer retail revenue .
For the first half of fiscal year 2026, its adjusted pre-tax profit climbed about 5% to 17.9 million pounds, underpinned by double-digit growth in total revenue.
($1 = 0.7632 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Thomas Derpinghaus)
