Consumer Discretionary

Report by The Retail Tracker

Tapestry has been on a roll, driven by Coach’s use of technology, customer insight and strong design team, but momentum now appears past its peak “buzz”. While Kate Spade is beginning to show signs of life, The Retail Tracker would avoid the name at current levels - with the stock up ~135% over the past year and +16% YTD, it looks fully valued at ~22x earnings. Investors could instead own LVMH or Moncler at similar valuations, or Capri Holdings as a turnaround. For aspirational exposure, The RealReal and Lululemon are seen as more compelling.

Consumer Discretionary

Violating the rules of Retail Fight Club - the more time Stacey Widlitz spends at REAL stores the more she is convinced luxury goods players will take back the second-hand market (not only to capture revenues but also to control brand pricing and image). Stacey uncovers authentication issues (despite claims of a month-long process involving three layers of ‘experts’), poor customer service and inadequate training of staff.