Bolton based and Britain’s largest online electricals retailer AO World has warned that supply chain issues, product shortages and rising costs were hammering its all-important peak trading period, prompting it to slash its profit outlook.
Trading during the holiday season was significantly weaker than anticipated only eight weeks ago, the company said, with poor availability in certain categories, particularly new products.
“Our results over this period have inevitably been affected by the constraints and uncertainty seen across our industry,” AO World founder and Chief Executive John Roberts said, while adding the company has cemented the progress of last year when profits tripled.
AO World, which sells laptops, washing machines, mobile phones and printers, saw profits soar during the pandemic as most people worked from home, but in October warned that profit would fall as a lorry driver shortage disrupted supply chains
The company, which has recruited about 500 new drivers, said full-year sales are now expected to be flat to 5% lower.
It cut its annual adjusted core profit outlook to a £10-20 million pound range for the 12 months ending March 31 next year, from £35-50 million pounds earlier.
It had reported profit of £64 million for 2021, and an operating loss of £11 million pounds for the six months ending Sept. 30, compared with a profit of £16 million pounds a year before.