From Fastcompany · · 1m 50s
Coach is Gen Z's handbag obsession
The legacy leather brand is winning younger shoppers, driving Tapestry to raise its full-year outlook as rivals struggle.
In brief
The legacy leather brand is winning younger shoppers, driving Tapestry to raise its full-year outlook as rivals struggle. Coach attracted 2.6 million new consumers in its latest quarter, with Gen Z making up 35 percent, helping parent company Tapestry grow 12 percent and raise its annual outlook. Originally reported…
Coach wins Gen Z shoppers
Legacy leather goods brand Coach has become a major draw for younger consumers. Tapestry, its parent company, welcomed 2.6 million new customers in the latest quarter.
Gen Z makes up a third of new buyers
Gen Z accounted for 35 percent of the 2.6 million new consumers Tapestry welcomed during the quarter, showing the brand's appeal to younger shoppers.
Tapestry beats estimates and raises outlook
The company grew adjusted revenue 12 percent this quarter, beating estimates. Tapestry raised its full-year outlook, reflecting confidence in the durability of its growth.
“Building on this outperformance, we are raising our full-year outlook, reflecting our confidence in the durability of our growth.”
Coach outpaces sister brand Kate Spade
Coach grew 16 percent on a constant-currency basis, while Kate Spade's sales fell 10 percent from the year before, showing unequal performance across Tapestry's portfolio.
Coach raises prices while selling more bags
Coach's revenue gains came with higher prices, with average handbag prices rising by low double-digit percentages even as the number of bags sold increased slightly.
Amplify strategy targets rising Gen Z income
Tapestry credits its success to Gen Z, a growing consumer base with rising income that aligns with its Amplify growth strategy focused on creativity, craftsmanship, and value.
“Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value.”
Coach partners with cultural influencers
Coach caught younger shoppers' attention by partnering with Elle Fanning, Tyla, and Jeon So-yeon, culturally relevant figures who appeal to Gen Z audiences.
Gen Z drives Coach conversation online
The strategy has translated to social media, with Gen Z consumers making or turning to videos featuring Coach items and discussing their handbags and leather goods.
What to remember
Coach attracted 2.6 million new consumers in its latest quarter, with Gen Z making up 35 percent, helping parent company Tapestry grow 12 percent and raise its annual outlook.
