AO have lost money again, no real surprise there from industry watchers and AO has said it aims to be profitable by 2021 but is profitable in the UK.
Basically, though they've posted a loss of £5.4 million. Ouch!
Better than last year's losses which were £6.3 million.
Revenue up £404 million so really, when you think about it, £1.1 million isn't a huge gain based on the revenue increase which would say to us, profitability is actually down but, that's just us.
CEO Steve Chaunce said, "While our core UK and Germany MDA (major domestic appliance) markets have been challenging, with the UK MDA market becoming tougher than expected, we take encouragement that we are at least maintaining market share in this core category in the UK and growing significantly in Germany"
Obviously hoping for a boost over the Black Friday season (good luck with that) and the holidays but if other indicators are correct, we'd not be too hopeful.
It's really hard to wrangle the truth out of people as everyone wants to say it's all great but, it's not.
John Lewis stated this morning that sales are falling "sharply" as well so, AO and JLP saying sales are down, plus the general industry sentiment and scuttlebutt is, it's slow. Very slow. In fact, some likened the current state of the industry to something like an extra from the Walking Dead, alive (ish).
Other warning rumblings have been noted, even from non-appliance related stuff by M&S, Sainsburys, B&M and more so, budget, high end makes no odds, all are saying the same thing... it's not looking good.
Obviously what everyone in business wants to know is, why?
We don't know but we suspect that from the appliance industry it's a combo of a good summer that kills a lot of things in our industry but also talking to industry people and the public, it's fear.
Fear over what's going to happen with Brexit and, until that's resolved people are just reigning it in and holding off on spending any more than they absolutely have to simply as many people do not know what will happen, how stable they might end up being financially or, if they'll even have a job.
We can't see that paralysis being broken until the sad, sorry tale of Brexit comes to an end, however, it might do so.
But, if it's not resolved and soon, expect more casualties in the retail sector.
Nobody much wants to talk about this though. There appears to be a lot of ostriches in this industry.