MYTE - Tapestry Farfetch and Mytheresa land as Cowen's top picks in discretionary retail

Cowen thinks discretionary retailers are set for a strong rebound this year with the sector as a whole improving and poised to benefit from stimulus.The firm names Tapestry (TPR), Farfetch (FTCH) and luxury fashion e-commerce retailer MYT Netherlands Parent B.V. (MYTE) as its top three ideas.Analyst Oliver Chen: "At TPR, we believe Outlet, logo trends, growing omni-channel features (BOPIS, mobile-app, and loyalty program), and customer-centric product innovation can drive continued momentum; Cowen's proprietary consumer data also indicates that ~85% of TPR consumers are positioned to benefit from stimulus payments. FTCH has benefited during the pandemic as more consumers shopped online, and we see further room for growth even as stores reopen. FTCH is expanding its presence in China with its launch on Tmall (starting in March 2021), and we believe more brands are choosing FTCH as e-concession provides strong unit economics for brands, which will yield a more attractive supply

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Tapestry, Farfetch and Mytheresa land as Cowen's top picks in discretionary retail