LVMUY - Tapestry: Navigating Brand Integration

2024-03-14 03:45:24 ET

Summary

• Tapestry's ability to integrate acquired brands and maintain a no discounting pricing policy are critical factors for the company.
• The company is focused on improving brand value and perception, investing in its brands, and leveraging its business platform.
• The company is now finishing Capri's acquisition, but Tapestry's financials show that previous acquisitions have yet to bear fruit.

In a previous analysis , we analyzed the performance disparity, over a decade, between brands like Louis Vuitton ( OTCPK:LVMUY ), Lululemon ( LULU ), Tapestry ( TPR ), and Ralph Lauren ( RL ). LVMH’s clear success reflects their ability to consistently buy brands and integrate them into their network, while always elevating the brand through French-made craftsmanship and no discounting pricing policy. Whereas Tapestry and others faced challenges in fully capitalizing on acquisitions, while periodically retorting to discounting to increase sales....

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