November's Black Friday impacts AO World's trading and stock price …
Feb. 25, 2015, 8:20 AM
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The annual shopping day frenzy, known as Black Friday, usually boosts retailers’ sales and profits towards the end of the year.
However, for the British online white goods retailer, AO World, Black Friday had an “adverse effect” on the company and “it did not produce incremental sales.” The group did not go into further detail over how Black Friday hurt the company.
However, AO World added that the impact will affect the group’s full year’s results.
“AO has experienced tougher than expected trading conditions in the final quarter of the year, as compared to Q4 in FY2014,” said John Roberts, CEO at AO World in a regulatory statement. “While we are disappointed that sales and profits are going to come in slightly below expectations, we remain committed to our market-leading, customer-focused business model.”
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AO World said it expected gross revenue to be around £472.5 million for this year and pre-tax profit to hit £16.5 million.
It caused its shares to plunge by almost 50% today. It knocked £500 million off the value of the company.
Shares in AO World, which sells fridges, freezers and washing machines online, were still down by nearly 30% as of 1 p.m. GMT (8 a.m. ET).
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November's Black Friday impacts AO World's trading and stock price …
