July 21, 2017 / 6:56 AM / 2 months ago

UK sales growth slows at AO World

LONDON, July 21 (Reuters) - British online electrical retailer AO World saw sales growth slow in its latest quarter as it faced a challenging trading environment and tough comparative numbers for the same period last year, it said on Friday.

British shoppers are feeling the impact of subdued wage growth and inflation and recent surveys have shown a sharp drop in consumer confidence.

However, last month Dixons Carphone, Britain’s largest electricals retailer, said trading in its home market was holding up.

AO, which sells goods such as fridges, cookers and washing machines, said UK revenue growth was 2.5 percent in its first quarter to June 30.

It had increased by 12.7 percent in AO’s 2016-17 financial year.

AO said the slowdown also reflected an expected reduction in third party website and logistics sales year on year as it focuses on its own brand.

Sales in AO’s Europe division rose 57.6 percent on a local currency basis.

“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,” said Chairman Geoff Cooper.

Shares in the Bolton, northern England, based group have fallen by over a third so far this year.

The stock, which listed at 285 pence in 2014, closed on Thursday at 119 pence, valuing the business at 548 million pounds ($712 million). ($1 = 0.7701 pounds) (Reporting by James Davey; Editing by Keith Weir)

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