Coach’s flagship brand saw sales rise 29% last quarter, reaching $1.7 billion in the quarter ended March 28. The brand’s appeal with Gen Z is tied to well-made, fashionable handbags with a recognizable name at prices typically between $300 and $700, making multiple purchases possible. Coach’s growth outpaced LVMH’s fashion and leather goods decline and exceeded Michael Kors performance. Revenue in China rose 55% year over year, excluding currency effects, with strong activity across Asia. Coach attributes success to about $1 billion per year spent on marketing and data insights, described as a “Coach-onomics flywheel,” supported by artificial intelligence for customer understanding.
"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."
"Kahn attributed the brand's success in part to the $1 billion a year Coach spends on marketing and data insights, allowing it to really understand what customers want and when. He called that mammoth spend a "Coach-onomics flywheel" that keeps generating sales increases. UBS recently raised its price target on the parent company Tapestry stock, citing its leadership among retailers in using artificial intelligence for customer insights."
"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. Consulting firm GlobalData estimates that Coach has 800,000 new Gen Z customers compared to l"
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