Tapestry Inc. (TPR)

Only name in the space that's performed decently (though some would argue it's not really a luxury name). Could be because it's more mid-priced than luxury-priced.

Last year, the FTC blocked the Tapestry-Capri merger to include Kate Space, Versace and Jimmy Choo brands among others. Since then, TPR has soared 148%; announced and accelerated a share buyback; delivered top and bottom line beats and raised forecast for three straight quarters. Drivin this is improving sales in the Coach brand which is stealing market brand. Buy on a pullback or a small position now.

Some high-end names like Louis Vuitton have not been doing well. But TPR has been performing decently. Above 200-day MA, which is moving higher. Mid-high luxury, and that part of the market is doing better. Could be that the ultra-rich are "downshifting" into names owned by this brand.

15.5x forward PE, slightly above 10-year historical norms for this name. 9-10% growth. So valuation is decent. Investors should be cautious about impact of a downturn in the economy on this type of name.

His favourite in this space is Ralph Lauren which collapsed today, and TPR is not better than RL. TPR will go lower in this market.

It's cheap, but there isn't a catalyst to take this higher.

The deal doesn't make sense, because TPR lost a lot of money. Better is Ralph Lauren in luxury goods.

Got an analyst upgrade today and the stock surged and lifted the entire retail clothing sector. He prefers tried-and-true Lululemon though.