Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Despite the challenging environment, Tapestry's first quarter results were strong and the company’s performance exceeded market expectations in terms of revenues as well as earnings.</li><li>This result highlights the company's transformation into a customer-centric and data-driven organization, which have helped it effectively navigate the challenging climate.</li><li>Their direct-to-consumer operations grew again in this quarter thanks to the strong management focus on building omnichannel experiences.</li></ul>

Despite the challenging environment, Tapestry's first quarter results were strong and the company’s performance exceeded market expectations in terms of revenues as well as earnings.This result highlights the company's transformation into a customer-centric and data-driven organization, which have helped it effectively navigate the challenging climate.Their direct-to-consumer operations grew again in this quarter thanks to the strong management focus on building omnichannel experiences.

<ul><li>Despite the difficult climate, Tapestry's financial performance in the recent quarter was decent.</li><li>It failed to meet revenue expectations of the Wall Street but managed to produce an earnings beat.</li><li>AUR growth for handbags worldwide increased by about 20% due to this outstanding performance, intentional reductions in promotional activities, and tactical price increases.</li></ul>

Despite the difficult climate, Tapestry's financial performance in the recent quarter was decent.It failed to meet revenue expectations of the Wall Street but managed to produce an earnings beat.AUR growth for handbags worldwide increased by about 20% due to this outstanding performance, intentional reductions in promotional activities, and tactical price increases.

Equity Capital Markets

<ul><li>Tapestry delivered a decent financial result during the holiday quarter, owing to an inflection at Kate Spade, continued momentum at Coach, and a return to pre-pandemic revenue levels at Stuart Weitzman.</li><li>The company saw a significant acceleration in sales trends, which drove strong double-digit growth over pre-pandemic levels and far exceeded its expectations across brands.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Tapestry delivered a decent financial result during the holiday quarter, owing to an inflection at Kate Spade, continued momentum at Coach, and a return to pre-pandemic revenue levels at Stuart Weitzman.The company saw a significant acceleration in sales trends, which drove strong double-digit growth over pre-pandemic levels and far exceeded its expectations across brands.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Tapestry Inc.: Financial & Price Forecasts

<ul><li>The strong momentum Tapestry witnessed during the 2021 fiscal has accelerated further in the first quarter with its sales increasing 9% above pre-pandemic levels.</li><li>Moreover, e-commerce increased by more than 60% in the first quarter, representing a sequential improvement on both a one and two-year basis, highlighting the significant opportunity this channel represents.</li><li>In Q1, Tapestry maintained a consumer-centric approach in its execution, acquiring more than 650,000 new customers across channels in North America, a significant increase over last year.</li></ul>

The strong momentum Tapestry witnessed during the 2021 fiscal has accelerated further in the first quarter with its sales increasing 9% above pre-pandemic levels.Moreover, e-commerce increased by more than 60% in the first quarter, representing a sequential improvement on both a one and two-year basis, highlighting the significant opportunity this channel represents.In Q1, Tapestry maintained a consumer-centric approach in its execution, acquiring more than 650,000 new customers across channels in North America, a significant increase over last year.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Simone Acc Collection  / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/simone-accessories-collection-ltd" target="_blank" data-smartkarma-citation="entities:34120:1" rel="noopener">Simone Accessories Collection (381920 KS)</a> is looking to raise up to US$341m in its upcoming South Korea IPO by selling a mix of primary and secondary shares.  </p></div><div>
<p>Simone is a leather accessories manufacturer with a focus on handbags and small leather goods (SLG). The company mainly produces handbags for major American masstige and luxury brands like Michael Kors, Tory Burch and Coach. The company is the leader in the luxury handbag industry with 10% and 30% of global and US market share, respectively, according to Bain’s estimates. It has a long relationship with major masstige and luxury handbag brands and a strong competitive edge over competitors.</p>
<p>In this note, we look at the company’s fundamentals, operating metrics, and share our thoughts on the deal.</p>
<p>Our previous coverage of the IPO:</p>
<ul><li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/simone-pre-ipo-a-leader-in-the-industry-but-recovery-will-be-slow-and-blackstone-s-stake-weighs" target="_blank" data-smartkarma-citation="insights:57806" rel="noopener">Simone Pre-IPO - A Leader in the Industry but Recovery Will Be Slow and Blackstone’s Stake Weighs</a> </p></li></ul>
</div>

Simone Accessories Collection (381920 KS) is looking to raise up to US$341m in its upcoming South Korea IPO by selling a mix of primary and secondary shares.  
Simone is a leather accessories manufacturer with a focus on handbags and small leather goods (SLG). The company mainly produces handbags for major American masstige and luxury brands like Michael Kors, Tory Burch and Coach. The company is the leader in the luxury handbag industry with 10% and 30% of global and US market share, respectively, according to Bain’s estimates. It has a long relationship with major masstige and luxury handbag brands and a strong competitive edge over competitors.
In this note, we look at the company’s fundamentals, operating metrics, and share our thoughts on the deal.
Our previous coverage of the IPO:
Simone Pre-IPO - A Leader in the Industry but Recovery Will Be Slow and Blackstone’s Stake Weighs 


Simone IPO - Peer Comparison and an Uncompelling Valuation

United States

Skechers U.S.A., Inc. designs and markets branded contemporary casual, active, rugged, and lifestyle footwear for men, women, and children.  The Company sells its products to department stores and specialty retailers.  Skechers also sells its products internationally through distributors and directly to consumers through its own retail stores.

Ralph Lauren Corporation designs, markets, and distributes men's, women's and children's apparel, accessories, fragrances, and home furnishings. The Company's products are sold under a wide range of brands. Ralph Lauren's operations include wholesale, retail, and licensing.

Crocs, Inc. designs and manufactures shoes.  The Company produces soft, lightweight, non-marking, slip- and odor-resistant shoes made of closed-cell resin material.  Crocs manufactures men's, women's, and children's shoes and markets them to retail chains.

VF Corporation is an international apparel company. The Company owns a broad portfolio of brands in the jeanswear, outerwear, packs, footwear, sportswear and occupational apparel categories. VF Corp's products are marketed to consumers shopping in specialty stores, upscale and traditional department stores, national chains and mass merchants.

PVH Corp. designs, sources, manufactures, and markets men's, women's, and children's apparel and footwear.  The Company markets its products at a wholesale level through department store chains and directly to consumers through retail stores. PVH Corp offers attire that includes dress shirts, sportswear, neckwear, and footwear.

Levi Strauss & Co. manufactures and distributes apparels. The Company offers jeans, casual pants, tops, jackets, shirts, and other related products. Levi Strauss serves customers worldwide.

Capri Holdings Limited retails apparel. The Company offers fashion luxury women's and men's accessories, footwear, apparel, watches, jewelry, eyewear, and fragrance products, as well as provides delivery services. Capri Holdings serves customers worldwide.

Under Armour, Inc. develops, markets, and distributes branded performance products for men, women, and youth. The Company designs and sells a broad offering of apparel and accessories made of synthetic microfibers.

Samsonite International SA designs, manufactures, and distributes luggage. The Company's products include suitcases, garment bags, casual bags, business cases, clothing, shoes, and accessories. Samsonite also licenses their trademarks for use on products such as travel accessories, leather goods, handbags, clothing, and furniture.

Columbia Sportswear Company designs, manufactures, markets, and distributes active outdoor apparel.  The Company's products include outerwear, sportswear, rugged footwear, and related accessories.  Columbia's products are sold to specialty and department store retailers in the United States and other countries.

SRF Limited is a multi-business Indian multinational engaging in the manufacture of chemical based industrial intermediates. The Company has a business portfolio that encompasses technical textiles, chemicals, packaging films and engineering plastics.

Page Industries Limited develops, produces, and distributes branded underwear for men, women, and children in India and Sri Lanka.

Li Ning Company Limited researches, designs, manufactures, distributes, and retails sports footwear, apparel and accessories for sport and leisure use.

Bosideng International Holdings Limited develops down apparel products in the Peoples Republic of China. The Company's products include down jackets, vests, and pants which it offers through retail outlets located in multiple cities.

Bosideng International Holdings (3998 HK)

Shenzhou International Group Holdings Ltd manufactures and processes textiles.  The Company produces, dyes, finishes, prints, embroiders, cuts, and sews knitwear.

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

Brunello Cucinelli SpA is a luxury fashion company, known for its cashmere products as well as exclusive brands.  The Company designs, manufactures, and distributes clothing and accessories globally for men and women.

Puma SE designs, manufactures, and sells sporting goods and apparels. The Company produces running, tennis, training, and basketball shoes, as well as t-shirts and accessories. Puma serves customers worldwide.

Pandora A/S designs, manufactures, markets, and distributes hand finished and modern jewellery made from primarily sterling  silver, gold, precious and semiprecious stones and Murano glass. The Company offers rings, bracelets, necklaces and earings.

The Swatch Group AG manufactures watches, watch components, jewelry, miniature batteries, liquid crystal displays, and scoreboards. The Company produces watches under various branded names, as well as operates retail boutiques. Swatch Group serves customers worldwide.

Tapestry, Inc. designs and markets clothes and accessories. The Company offers handbags, leather goods, footwear, fragrance, jewelry, outer wear, ready-to-wear, scarves, sunwear, travel accessories, and watches. Tapestry serves customers in the United States.

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Tapestry Inc (TPR US)

Tapestry Inc: Major Drivers

Despite the challenging environment, Tapestry's first quarter results were strong and the company’s performance exceeded market expectations in...

Baptista Research

Tapestry Inc: Digital Sales Performance

Despite the difficult climate, Tapestry's financial performance in the recent quarter was decent. It failed to meet revenue expectations of the...

Baptista Research

Tapestry Inc.: Financial & Price Forecasts

Tapestry delivered a decent financial result during the holiday quarter, owing to an inflection at Kate Spade, continued momentum at Coach, and a...

Baptista Research

Tapestry Inc. - Investment Thesis

The strong momentum Tapestry witnessed during the 2021 fiscal has accelerated further in the first quarter with its sales increasing 9% above...

Baptista Research

Simone IPO - Peer Comparison and an Uncompelling Valuation

Simone Accessories Collection (381920 KS) is looking to raise up to US$341m in its upcoming South Korea IPO by selling a mix of primary and...

Sumeet Singh

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