Wells Fargo analysts are forecasting another tough quarterly report from Tapestry Inc. TPR, -0.65% brand Kate Spade, but say the brand’s new designer, Nicola Glass, could improve things going forward. The last collection from Kate Spade’s previous designer, Debra Lloyd, “underperformed meaningfully,” Wells Fargo wrote. And there’s still softness in the “accessible” category of handbags that Kate Spade occupies, which could have an impact on the coming earnings announcement. But a survey of Kate Spade shoppers shows that there’s been a noticeable change in 2019 merchandise, with many calling it a change for the better. “That suggests that the Nicola collection is resonating well with Kate Spade’s addressable market and the long-term path is still there,” wrote analysts led by Ike Boruchow. Wells Fargo rates shares of Tapestry, whose other brands include Coach and Stuart Weitzman, outperform and trimmed the price target to $38 from $40. Tapestry stock has slipped 5% in 2019 so far while the S&P 500 index SPX, +0.14% has gained 16.1%.
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