BUZZ-Barclays reinstates coverage of Tapestry and Capri

Reuters11-20 22:09
BUZZ-Barclays reinstates coverage of Tapestry and Capri

** Barclays reinstates coverage of handbag maker Tapestry TPR.N and Coach parent company Capri CPRI.N with "equal weight" rating, after mutual termination of their merger agreement

** Brokerage says consumer remains under pressure with

discretionary luxury purchases, limiting sales

** Barclays adds both companies relying on promotions to some extent to drive sales

** Brokerage sees potential for intensifying competition and promotional activity for TPR

** "It's difficult for CPRI to break from promotional strategy to drive full-priced sales in the luxury category" -Barclays

** As of last close, TPR stock up about 51.1% and CPRI down about 60.1%, YTD

(Reporting by Prakhar Srivastava in Bengaluru)

((Prakhar.srivastava2@thomsonreuters.com))

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