(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
AO World Boosts Profit Forecast, Shares Climb 12%
By Raechel Thankam Job
(Reuters) -Britain's AO World raised its annual profit forecast for the second time in three months on Tuesday as its discounted electronic goods gained market share in its consumer-focused business, sending the retailer's shares as much as 12% higher.
AO, which sells items such as tumble driers and TVs, now expects full-year adjusted pre-tax profit to be near the top of a 45 million pound ($59 million) to 50 million pound range for the year ending March 31. In September, it raised the lower end.
The performance contrasts with broader sector nervousness ahead of Finance Minister Rachel Reeves' budget on Wednesday, with major retailers warning about potential impacts on consumer sentiment, particularly for discretionary purchases.
AO's finance chief Mark Higgins said he hoped the budget would be "centred around driving growth in the economy and creating jobs" but added: "I feel like I will be disappointed".
AO ramped up advertising and added more than 900 products to its range in the first half, helping drive a 12% rise in business-to-consumer retail revenue as customers turned to its discounted membership programme.
Higgins said 70% of customers are planning purchases during the crucial Black Friday trading period, with AO expecting stronger holiday sales than last year and second-half profitability similar to the first.
"We've seen the customer being resilient this year...coming off the back of a couple of tough years in the electricals market, we have seen the overall market for our products increase", Higgins told Reuters.
AO's shares were up nearly 5% at 1012 GMT, leading gains on the FTSE mid-cap index.
For the first half of fiscal year 2026, AO's adjusted pre-tax profit climbed about 5% to 17.9 million pounds, underpinned by double-digit total revenue growth.
($1 = 0.7632 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips, Thomas Derpinghaus and Alexander Smith)
