Online retailer AO has launched a strategic review of its German business after the division was "significantly impacted" by "intensified" competition and "substantially increased" digital marketing costs.
The Bolton-headquartered company said it will "evaluate a range of options" and that the board is "focused on maximising shareholder value".
AO has also confirmed its current trading estimates for the full year remain in line with the guidance set out at the interim results on November 23, 2021.
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Group revenue increased by 58% in the nine months to December 31, 2021, compared to the same period two years ago.
However, revenue dipped by 3% when compared to the same period in 2020.
Its third quarter revenue rose 45% on 2019's results but fell 14% compared to 2020's.
A statement issued to the London Stock Exchange said: "Our German business is being significantly impacted by a number of recent material changes to the local trading environment: competition in the online market has intensified whilst online penetration has returned to pre-pandemic levels; digital marketing costs have substantially increased against pre-pandemic levels; and supply remains constrained.
"We expect these trends will continue for the foreseeable future in the German market.
"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."
