Wells Fargo analyst Ike Boruchow lowered his price target for Tapestry to $45 from $58, while reiterating an Outperform rating on the shares. In a research note titled "2019 Retail Outlook report," the analyst says he believes Holiday reads likely slowed post Black Friday, Multinational brands struggled relative to retailers the past several months as concerns around Europe weakness, China uncertainty, a slowdown in tourism and FX pressures are growing, e-commerce meaningfully underperformed Brick and Mortar retail in 2018 as inflated multiples have been hit hard in the face of a painful tech ''unwind'' and choppier fundamentals, 2019 is likely to be worse than 2018 for the space, and Leases are coming onto retailers' balance sheets in 2019, making for worse capital structure optics.

Capri Holdings (CPRI) shares could fall to the low-to-mid $20s if Tapestry's (TPR) $57 per share takeover is successfully blocked by the Federal Trade Commission, Yiqin Shen of Bloomberg reports, citing a survey of 20 merger-arbitrage specialists. The survey, conducted on Tuesday, focuses on merger-arbitrage estimates on the Capri's downside price - a level that reflects the stock's fundamental value by the end of 2024, when the outcome of the FTC's challenge is expected to be either upheld or overturned in court, Shen notes. Shares of Capri Holdings are down 5% to $34.81 in midday trading.

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Tapestry (TPR) issued the following statement in response to the Federal Trade Commission's attempt to block its proposed acquisition of Capri Holdings (CPRI). "There is no question that this is a pro-competitive, pro-consumer deal and that the FTC fundamentally misunderstands both the marketplace and the way in which consumers shop. Tapestry and Capri operate in an intensely competitive and highly fragmented industry alongside hundreds of rival brands, including both established players and new entrants. We also compete for consumers who are cross-shopping a wide range of channels and brands along a vast pricing spectrum when considering what to purchase. The reality is that consumers have a host of choices when shopping for luxury handbags and accessories, footwear, and apparel, and they are exercising them. The bottom line is that Tapestry and Capri face competitive pressures from both lower- and higher-priced products. In bringing this case, the FTC has chosen to ignore the reality of today's dynamic and expanding $200 billion global luxury industry. This transaction will unite six brands that offer products across a wide range of categories. With Capri, Tapestry will gain access to a broader set of global luxury consumers and geographies and will drive sustainable, healthy growth for Capri's iconic brands, building desire and engagement with consumers globally. Tapestry has a strong record of not only innovating for consumers but also providing industry-leading wages and benefits for our employees. The combined company will continue to set the bar for both consumer and employee experiences. We have full confidence in the merits and pro-competitive nature of this transaction. It will bring significant benefits to the combined company's customers, employees, partners, and shareholders in the U.S. and around the world. We have strong legal arguments in defense of this transaction and look forward to presenting them in court and working expeditiously to close the transaction in calendar year 2024."