Style‑obsessed shoppers around the world are flocking to an 85‑year‑old handbag classic. This month, Tapestry said its flagship Coach brand saw sales rise 29% last quarter, growth that would make any new brand jealous. Even better: The leather goods brand’s appeal with Gen Z shoppers is a key ingredient to this success.
Coach, which started life as a wallet and billfold maker in New York in 1941 and is now a handbag and leather goods behemoth, has found favor with younger shoppers who can’t afford an Hermès bag or a Louis Vuitton briefcase but still want a well-made, fashionable handbag with a recognizable brand name. The bulk of Coach handbags are priced between $300 and $700 apiece, well below the prices of top luxury brands—making it possible for some customers to buy several bags.
“We’re aspirational in design, fashion, and quality, yet extremely approachable in price positioning,” Coach brand CEO Todd Kahn told investors last week. In the quarter ended March 28, Coach sales hit $1.7 billion. In contrast, LVMH sales of fashion and leather goods fell 2% in their most recent quarter. And Coach is also outpacing direct rivals in its segment of the market: Michael Kors sales fell 5.6% last quarter. Coach’s soaring popularity is particularly notable in China, where it has operated since 2009: Revenue was up 55% last quarter year-over-year, stripping out currency fluctuations. Business is brisk elsewhere in Asia too.
