Adds details, background and update on German business
April 29 (Reuters) – AO World AO.L, Britain’s largest online electricals retailer, cautioned on Friday that its near-term revenue and profit outlook could be hit by inflationary pressures, supply chain logistical challenges and the rising cost-of-living crisis.
The London-listed company forecast lower core earnings for the year ended March 31 at 8 million pounds ($10.02 million), due to weaker consumer demand and higher costs. AO World had previously predicted a core profit of 10 million-20 million pounds.
British households are facing the biggest cost-of-living squeeze since records began in the 1950s, according to Britain’s budget forecasters.
The retailer, which sells laptops, washing machines, mobile phones and printers, said customer demand in the UK progressively weakened across the sector during the second half of the year, dented by global supply chain disruptions that hit product availability in certain categories.
AO World, which started reviewing options for its German business in January in the face of rising costs, said the review is still underway.
($1 = 0.7987 pounds)
(Reporting by Shanima A in Bengaluru; Editing by Sherry Jacob-Phillips)
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