(Reuters) -British electronics retailer AO World raised the lower end of its adjusted pre-tax profit range for fiscal 2026 on Monday, supported by robust growth in its business to consumer operations.
AO World Raises Profit Forecast and Announces Share Buyback Plan
(Reuters) - British electronics retailer AO World laid out plans for its first-ever share buyback and raised the lower end of its annual adjusted pre-tax profit forecast on Monday, with the announcement sending its shares as much as 15.6% higher.
Amid sticky inflation, AO World's discounted pricing via its membership program has helped retain customers and attract new ones, boosting demand for essential household appliances in its core consumer-facing business.
The retailer, which sells appliances ranging from tumble driers to TVs, said it expects its business-to-consumer retail revenue to rise 11% and group revenue 13% in the first half of the year.
It also said it intends to launch a share buyback programme for up to 10 million pounds worth of ordinary shares.
AO World, which reported a record annual profit in June, has been exploring the closure of its contract‑mobile division and plans to launch its own online mobile service.
Rival Curry's also reported strong summer sales this month helped by demand for air conditioners, and reaffirmed its annual forecast.
However, Curry's was among several major British retailers that wrote to finance minister Rachel Reeves in August warning that further tax increases in November's budget could hurt living standards after April's rise in wages and employers' social security contributions.
Shares of Bolton-based AO World were up 11.6% at 93.1 pence at 0838 GMT, the biggest gainers on the FTSE midcap index.
It now expects pre-tax profit for the year ending March 2026 of between 45 million and 50 million pounds ($61.02 million and $67.81 million), from its prior forecast range of between 40 million and 50 million pounds.
On average, analysts expect the company to report an annual pre-tax profit of 46 million pounds, according to a company-compiled consensus.
($1 = 0.7374 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman, Kirsten Donovan)
