AO World plc ( LSE:AO. ) is the leading online seller of major domestic appliances in the U.K. Shares were down in the first quarter as the company continues to be negatively impacted by rising appliance manufactured in Europe as the British Pound weakens relative to the Euro. We expect higher costs for AO products to stabilize later in 2017. AO continues to execute its domestic U.K. plan and take share from competitors. We expect its German business to expand while the company works to improve terms with vendors in advance of further volume expansion. (Ashim Mehra)
From the Baron Focused Fund first quarter 2017 shareholder letter .
This article first appeared on GuruFocus .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
