AO World hikes sales by 30% but shares fall

17th Jul 2014 14:53

Household electrical retailer AO World reported a sales hike but its shares fell as an analyst voiced doubts about expansion into Germany.AO World, which sells televisions, washing machines and other appliances, posted a 30% rise in like-for-like sales in the three months to the end of June.AO said it was developing its TV range and was making good progress in launching ao.de, its new operation in Germany, this year. It said it had secured offices and warehousing in Cologne and was recruiting German staff.The group, which floated in March at 285p per share, said its finances and trading were strong and it continued to trade in line with expectations in the financial year to date in all respects. It will publish half-year results to September 30th on November 25th.Retail analyst Nick Bubb said the update was good, but said its move into Germany was "potentially ill-advised".Shares in AO World dropped 9.8p or 4.02% to 234.1p at 14:47 in London.PW