Can Tapestry and Capri Holdings Recover From This Big Mistake?

Tapestry (NYSE: TPR) and Capri Holdings (NYSE: CPRI) operate from the same conceit: that their aspirational leather goods and accessories business could be transformed into luxury design houses on the order of Kering or LVMH Moet Hennessy Louis Vuitton (OTC: LVMHF)(OTC: LVMUY).

Both retailers changed their corporate identity, pursued a strategy of building a multibrand company through acquisitions, and limited their availability in department stores to impose a forced exclusivity through higher premiums that neither brand deserved. 

Image source: Versace.

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Source Fool.com