Of particular note is the outperformance of domestic facing cyclicals over global cyclicals within Europe, which indicates to us that performance is being driven more by Europe-centric factors than by improvement in the global economy. An example of a company benefiting from this dynamic is Maisons du Monde S.A. (XPAR:MDM), a furniture retailer based in France. The company focuses on the “affordable luxury” or “inspirational affordable” category. For years, management has embraced a true omni-channel approach, which they believe will be a winning business model over the long term. They have been extremely successful in France and have been expanding throughout Europe in recent years where online sales of home goods are underpenetrated. They are creating a network across the continent, which presents a significant barrier to entry for would-be competitors. In addition, we like the company’s clear strategic plan and growth focus.
From Watsatch International Group's third quarter 2017 shareholder letter.
