Piper Jaffray analyst Erinn Murphy reiterates an Overweight rating on Tapestry with a $40 price target after hosting an investor dinner with management. Management is confident in the multi-brand strategy and reiterated their view to achieve double-digit EBIT growth in fiscal 2020, Murphy tells investors in a research note. Further, Tapestry's trends overseas are "particularly strong" and the company is not seeing pressure in its China business, adds the analyst. She would also not be surprised if Tapestry started accelerating the use of its buyback authorization in the near-term given the current valuation of the stock.

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."