One retailer might be having a festive holiday season.
Tapestry (TPR) - Get Report , owner of Coach and Kate Spade, is primed to deliver a solid holiday quarter on the back of improved styles Guggenheim analyst Robert Drbul said in a note on Thursday. Longer term, Drbul sees Tapestry winning from an expansion into lifestyle and outerwear categories for men. Synergies from the blockbuster deal of Kate Spade is also a key consideration in the analyst's thesis. Tapestry is Drbul's top idea for 2018.
Tapestry CEO Victor Luis was particularly bullish on Kate Spade in a recent interview with TheStreet.
"What is just as exciting is really meeting with the team and understanding the opportunity in the business. Kate has a really terrific brand positioning. They have some real strengths that I think are learnings for us," Luis said.
He added, "I have been very impressed with the opportunities in Kate Spade's ready-to-wear business. They have a very solid know how there in product development. Also exciting is how engaging Kate Spade is to the younger consumer, with their feminine and fun positioning. It's really resonating with the millennial consumer. There is a lot of greenfield opportunities not just in North America for Kate Spade, but also internationally with a special focus on China, the rest of Asia and Europe."
Sounds like more profits are on the way post holiday.
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