AO has said it will explore options for its German arm as a number of issues impacted its revenues over the past nine months.
The electricals retailer posted a 45% increase in group revenues in the third quarter to December 31 on a two-year basis but a drop of 14% year on year.
UK sales were “broadly stable” compared with the same period last year whereas its German business suffered a 24% decline.
AO said a combination of factors impacted its sales in Germany, including competition in the online market, an increase in digital marketing costs and supply chain constraints.
It said in a statement: “The board is focused on maximising shareholder value and, as a result of the aforementioned factors, the group has decided to commence a strategic review of its German business, which will evaluate a range of options. The results of the review will be announced in due course.
“We remain confident about AO’s long-term growth prospects, driven by the strength of our proven business model, the quality of our customer proposition and the long-term market trend towards online migration.”
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