AO World hikes earnings outlook again as cost-cutting bears fruit

The online electricals retailer expects underlying earnings to be in the range of £37.5 million to £45 million for the full year.

Online electricals retailer AO World has revealed it is to close its German business after eight years and focus on its UK operations (Alamy/PA)

Online electricals retailer AO World has hiked it annual earnings outlook for the third time in just over three months as it said cost-cutting efforts were paying off.

The Bolton-based group said its profitability has seen a better-than-expected improvement as it drives cost savings thanks to a “resilient” customer base.

AO World said price increases across mobiles have also been slightly higher than forecast.