(MENAFN- ProactiveInvestors - UK) Shares in the online grocer Ocado PLC (LON:OCDO) fell 2% in early trade after it revealed a slowdown in momentum in the final quarter of its financial year.
Gross retail sales were up 13.1% in the three months to November 27. Third-quarter growth was 13.6%, as was the annual rate of expansion.
The delivery group also said the average order size fell year-on-year by 2.9%.
It blamed this on price deflation and customers taking up an offer allowing them to shop more frequently, leading to a smaller basket size.
That said, weekly orders were up 17.6% to 241,000.
"We are very pleased with the financial performance achieved this year,' said chief executive Tim Steiner.
'The strong growth in sales and order volumes reflects the attractiveness of our retail offer to customers.'
The City was less pleased with the performance as the shares were marked down 5.72p to 271.98p in early trade.
The latest numbers from the group hinted at pressure on profit margins, analysts said.
It has been a quite a ride for investors in Ocado, which is feeling the heat from rival services and growing muscle of Amazon, which is moving into grocery delivery after teaming up with Morrison's (LON:MRW).
The stock is down 25% in the year to date, but has oscillated between 203p and 373p.
Opinion in the Square Mile is split on the prospects of the group.
Of the 11 brokers logged as following the company, five hold 'buy' recommendations and four are 'sellers' of the stock. The remainder hold 'neutral' calls on Ocado shares.
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