We’re hosting a Black Book next Wednesday July 31 at 12:30EDT to fully vet the case around TPR and CPRI. With some of the highest free cash flow yields in all of retail, these stocks are both trading below far less defendable businesses – as if there is a lot of bad news to come. The growth optionality around both names is being completely ignored by the market, and neither are getting any credit for the growth and margin levers that are likely to emerge over a TAIL duration – and even in 2H19 (TREND). We’re going to explore past cycles, specific trends within the handbag/accessories cycles, and subsequently stress test our models to see how bad things need to get fundamentally for these stocks to gap down further or to justify the valuations we see today. Conversely, we’ll analyze the upside if things go right – and the rate of change turns positive – which we’re inclined to think will be the case. TPR is on our Best Ideas Long list, and CPRI sits at the top of our Long Bench. We’ll provide more details over the next week as to specific areas we’ll tackle on each name, and the space overall (including trends relative to luxury competitors).
Date/Time: Wednesday July 31st at 12:30pm EDT
Confirmation Number: 13692440
Live Video Link: CLICK HERE