UK’s AO World cuts profit outlook, flags product shortages
British online electricals retailer AO World on Tuesday cut its fiscal 2022 profit outlook citing supply chain issues and warned of shortages in certain product categories ahead of the crucial holiday shopping season.
The company, which sells laptops, washing machines, mobile phones and printers, reported an operating loss of 11 million pounds ($14.72 million) for the six months ending Sept. 30, compared with a profit of 16 million pounds in the year-ago period.
AO World, which has seen profits soar during the pandemic, continues to see supply chain challenges with poor availability in certain categories, particularly for newer products where it has less scale, experience and leverage.
The company expects annual adjusted core profit between 10 million pounds to 20 million pounds for the 12 months ending March 31, 2022, compared to its previous forecast of between 35 million pounds and 50 million pounds issued in October.