Black Friday gives AO a happy Christmas

AO has reported record monthly sales for November last year thanks to popular Black Friday deals.

The online retailer said it was “pleased” with its performance over its peak third-quarter trading period for the three months to end of December, against a challenging trading backdrop.

During this period, UK sales rose 4.4% while sales in the rest of Europe increased by 31.3%.

These results came as the major domestic appliance (MDA) market shrunk in 2018, according to analyst GfK, while prices increased.

Writing for kbbreview before Christmas, Kelly Whitwick, GfK UK retail lead, said average MDA product prices jumped 8% in 2018, taking the average price of a household appliance across categories to £283, up from £275 the year before.

AO said it remains on track to deliver its long-term strategic plan and expected full-year earnings to remain unchanged.

Overall group revenue increased by 8.2% compared with the same period last year.

“Our offering of Black Friday deals over a longer time period in November was well received by customers. Sales flow was smoother and our margins improved,” the company said.

AO chief executive Steve Caunce, said: “Against a challenging backdrop, Q3 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.”

The results did not include earnings from Mobile Phones Direct, which the online retailer bought last December.

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