** 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))
Comments