AO World Shares Rally as Profit Seen at Top End of Guidance Range

AO World (LON: AO.) shares rose around 2.4% in early Tuesday trading after the electricals retailer said full-year profit is expected to be at the top end of its guidance range, supported by strong retail sales growth.

In a trading update, AO said adjusted profit before tax for the year to March 31, 2025, is set to rise around 30% and land near the upper end of its previously upgraded forecast of £39 million to £44 million. 

Group like-for-like revenue is expected to increase 7% year-on-year to £1.1 billion, driven by a 12% rise in B2C retail sales, while reductions in B2B and mobile are said to reflect AO’s strategic focus on profitable growth.

Looking ahead to FY26, the retailer said it expects another year of double-digit revenue growth in its core B2C Retail division and for profits to continue outpacing sales growth, despite economic uncertainty and cost headwinds from the UK government’s budget.

The company also announced that Mark Higgins has been appointed Chief Operating Officer in addition to his role as Chief Financial Officer.

CEO and Founder John Roberts said: “AO is back to being a highly efficient growth machine. We are reaping the rewards of our strategy and 25 years of unwavering obsession with amazing customer service.”

He added that the company’s performance shows the current model is working, while they are also carrying good momentum into the new financial year.

AO World will publish its full-year results on 18 June 2025. Despite Tuesday’s gains, the stock remains down 2.9% year-to-date.