(Reuters) -British online electrical retailer AO World on Tuesday flagged continued impact from a deepening cost-of-living crisis ahead of the key Christmas season, but struck a positive note on annual profit outlook due to its cost-saving steps.
The outlook comes as surging inflation hits firms such as AO World hard, as a sharp rise in everything from energy bills to food products forces Britons to curtail spending amid retailers struggling to contain rising costs and supply chain snags.
The period between Thanksgiving and Christmas generally brings in more sales for retailers than any other time of the year but the demand is expected to be muted in 2022.
The company also said it would start to realise the full benefit of cost-saving steps, including job cuts in the senior and middle management levels, during the second half of the current fiscal year and the next.
The FTSE Small Cap-listed firm said adjusted core profit for the six months ended Sept.
30 fell 11% to 9 million pounds ($10.65 million), while revenue dropped 17%.
The group forecast adjusted core profit for the year ending March 31 to be in the top end of 20 million pounds-30 million pounds range it had guided in August.
($1 = 0.8452 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; editing by Uttaresh.V)
