FTSE 250-listed company's share price has reached an all-time high today.
Group expects its first half sales to end up around 57% higher than last year.
Shares in AO World have jumped over 20 per cent to an all time high this afternoon after the online-based retailer posted an upbeat update.
AO World now expects its sales for the six months to the end of September to end up 57 per cent higher than last year.
The group said that its sales momentum had continued despite bricks-and-mortar based rivals being allowed to reopen in the summer.
With many Britons working from home during the crisis, sales of electrical goods and home office products have been high in recent months.
The FTSE 250-listed company's share price has rocketed today and is currently up 20.94 per cent or 48.46 points to 279.96p. A year ago, the group's share price was closer to the 63.50p mark.
Russ Mould, investment director at AJ Bell, said: 'Anyone working or furloughed at home only has to look out of their window to see delivery vans going up and down the road all day long.
'Years ago buying a new cooker would have involved a visit to a showroom and lots of chit chat. Now it's a simple check of the reviews and an order online in minutes.'
AO World said lockdown had triggered a shift in consumer habits, adding that it had seen a 'lasting step-change in online penetration.'
The group's founder and chief executive John Roberts, said: 'The last six months of trading have been like no other during my two decades in the business.
'AO was in good shape coming into this financial year and the global, structural shift in customer behaviour to online, accelerated by Covid, emphasised our strengths.'
He added: 'Whilst we remain mindful of the uncertain economic climate caused by the pandemic and Brexit, we are on track with plans and well set for our biggest ever peak trading period in the UK and Germany.'
AO World, which sells washing machines, fridges, cookers and televisions as well as mobile phones and printers, said it expects to report revenue of £715million for the six months to 30 September. The group will publish its latest interim results on 24 November.
UK revenue is expected to be up by around 54 per cent while the increase in Germany is expected to be about 83 per cent on a constant currency basis.
The group is profitable in the UK but loss-making in Germany, a market it entered in 2014. It previously forecast that its German business would be profitable from its 2021-22 year.
On its mobile operations, AO World said: 'During the first half we have seen a change in the behavior of some customers in our mobile business with increased cashback redemption rates and cancellation of contracts with Networks that have negatively impacted our gross margin. We have changed the mix of our customer proposition to minimise this risk in future.'
Mould of AJ Bell said: 'A year ago, few people would have bet on AO being one of the big retail success stories in 2020 but the lucky few that did back this horse would now be minted. Its share price is now up 300% in the past 12 months.
'Ongoing lockdown restrictions provide the tailwind that AO needs as it continues its path towards making a profit. And herein lies a big issue – everything to date has been about driving sales growth but the business hasn't really made any proper money. That could soon change.
'Results for the year to 31 March 2020 saw a tiny pre-tax profit of £1.5 million which was the first proper earnings breakthrough for the business. Analysts now expect pre-tax profit to start motoring ahead, with £36.6 million forecast in the current financial year and £43.6 million in 2022.'