Gen Z is obsessed with this once-forgotten handbag brand, and sales are soaring

Coach, a once-neglected leather goods brand, has captured the attention of Generation Z, resulting in a surge in sales. Tapestry, the parent company of both Coach and Kate Spade, disclosed its Fiscal 2027 First Quarter Results and full-year outlook, revealing a 35% increase in new customers, predominantly Gen Z. This influx of new customers propelled Tapestry's adjusted revenue growth by 12% for the quarter, surpassing expectations.

However, not all brands fared equally; Coach experienced a 16% growth on a constant-currency basis, while Kate Spade saw a decline of 10% year-over-year.

The revenue growth at Coach was accompanied by an increase in prices, with average prices for handbags rising by double-digits, and sales of bags also slightly increasing. The company attributes this success to the growing Gen Z consumer base, characterized by higher income levels, aligning with its Amplify growth strategy. Tapestry's CEO, Joanne Crevoiserat, stated, "Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value."

Coach has gained traction among Gen Z shoppers by collaborating with culturally relevant figures, including celebrities such as actress Elle Fanning, singer Tyla, and rapper Jeon So-yeon. This strategy has resonated with young consumers, who have engaged with the brand through social media. For instance, a TikTok video featuring coach handbags received an impressive 472,000 views, and content creators have been endorsing the brand, praising its quality and affordability.

Sales associates have also gone viral, showcasing favorite products and providing advice to customers on the brand's offerings. Crevoiserat concluded, "Our first quarter marked a powerful start to the year, with revenue, margin, and earnings growth ahead of expectations and strength around the world."