Consumers want high quality goods at reasonable prices, says Jim Cramer

Acquisition & Strategy - Tapestry's attempted $85 billion acquisition of Capri Holdings was blocked by the FTC due to concerns about creating an excessively concentrated player in the accessible luxury handbags market [1][2] - Wall Street disliked the Capri deal, fearing Tapestry would overstretch its balance sheet to acquire a consistently worse operator [3] - Tapestry redeemed deal debt and announced a $28 billion buyback program, including a $2 billion accelerated share repurchase program, representing roughly 15% of shares outstanding [6][7] - Tapestry sold its Steuart Weitzman brand to focus on the core Coach brand and turning around Kate Spade [8][9] Financial Performance & Market Dynamics - Tapestry's stock has increased 148% since the merger was blocked and is up 69% for the year [2] - Coach's revenue growth accelerated from 2% to 15% on a constant currency basis [11][12] - Tapestry delivered substantial top and bottom-line beats, raising full-year earnings forecast by $025 [10] - Kate Spade's constant currency revenue growth has declined for eight straight quarters, down 12% [16] Future Outlook & Risks - Tapestry aims to turn around Kate Spade by emulating Coach's strategies, targeting younger consumers and developing new products [17] - The stock trades at just under 22 times this year's earnings estimate, with 18% earnings growth, but is considered inherently risky given its recent performance [19][20] - The report suggests a potential buying opportunity if Tapestry reports a good quarter that doesn't fully satisfy shareholders, leading to a sell-off [20]