Ralph Lauren, Tapestry Seen Gaining From Higher-End Outlet Strategy

According to CNBC, higher-end retailers are investing in outlet operations and targeting lower-end shoppers, a shift analysts say could benefit stocks including Ralph Lauren, Tapestry and Capri Holdings. Ralph Lauren and Tapestry have upgraded their outlet stores with more full-price products and higher-end merchandise, while Bernstein analyst Aneesha Sherman said aspirational consumers account for most luxury-brand revenue. Wells Fargo raised its price target on Ralph Lauren to $425 from $415 earlier this week, and analysts expect the company’s full-year net sales to reach $8.627 billion. Bernstein has an outperform rating on Tapestry and a $180 price target, while Sherman said Michael Kors owner Capri Holdings is also moving toward an elevated outlet model, though the strategy has not fully launched yet.