AO World’s shares rose over 11% today morning after the online electrical retailer upgraded its guidance for the financial year ending last month.
AO said it now expects profits to come in around the top end of the £37.5m to £45m adjusted EBITDA guidance issued in February.
AJ Bell’s Russ Mould said: “After a rollercoaster of a time around the pandemic when initially the company enjoyed huge share price gains before crashing back down to earth, investors will be pleased with AO World’s latest update.
“The online electricals seller expects full year profit at the top end of expectations as consumers have proved to be more resilient than feared and, significantly, margins are holding up.
“The company is making tangible progress in reducing costs and this latest update has to be chalked up as a serious achievement given how tough it is to sell larger ticket items right now.”