Geoffrey Smith 

Investing.com Ao World LON stock dropped as high as 20% on Friday morning after electronics retailer told it that its huge sales boost from the pandemic was fading. 

They were down 17% at 3:30 AM ET (7:30 GMT) after the initial plunge.

AO World reported that sales for the six months ending September were down 6% compared to the previous year. It also stated that the company expects similar results in the following six months. 

This company had been among the biggest beneficiaries of the 2020 pandemic. The surge in demand for household appliances was due to mass adoption of working from home. The company has now lost over half its gains since 2020 peak to trough but it is still more than 100 percent from before the outbreak.

AO World, like many other companies, tried to discern the distortions caused by pandemic effects. It highlighted the comparison of the first six months of the last pre-pandemic full year. This was compared with September 2019’s revenue of 66%.

AO World said that despite the ‘challenging’ operational environment due supply chain issues and other problems, it doesn’t anticipate product shortages over the critical holiday period.

According to the company, although the macro-outlook is uncertain, it was able to say that they were confident in the resilience of their business model and could meet customers’ demand for the third quarter.