Legacy leather goods brand Coach has won over Gen Z, and it’s already translating into results.
Tapestry, the parent company of both Coach and Kate Spade, just released its Fiscal 2027 First Quarter Results alongside a full-year outlook. The company revealed it has welcomed 2.6 million new consumers in the quarter, of which 35% were Gen Z.
The new customers helped Tapestry grow 12% in adjusted revenue this quarter and beat estimates.
But the brands are not pulling equally, with Coach carrying the load. While Coach grew 16% on a constant-currency basis, Kate Spade’s sales fell 10% from the year before. Revenue gains at Coach also came with higher prices, with the average price for handbags rising by low-double-digit percentages while the number of bags sold also increased slightly.
The company credits the growing Gen Z shoppers, a growing consumer base with rising income, in line with its Amplify growth strategy.
“Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value,” Tapestry CEO Joanne Crevoiserat said in the earnings report. “Building on this outperformance, we are raising our full year outlook, reflecting our confidence in the durability of our growth.”
The brand has caught the attention of young shoppers by partnering with culturally relevant figures, including popular actress Elle Fanning, South African singer Tyla, and South Korean rapper Jeon So-yeon.
The strategy has translated to social media, with Gen Z consumers making or turning to videos featuring Coach items or discussing their handbags and leather goods.
For instance, in one TikTok video with 472,000 views, content creator Amanda Dawson Verner endorsed the brand by showing off her collection of Coach handbags. “For the price point on these, it feels like a high-end luxury bag,” she said in the video captioned “the ultimate cool girl bag.”
Like Verner, many users praised the quality and price of Coach bags, with users flooding comment sections for advice on what models and sizes to get.
Users with connection to the brand also added to the buzz, with several sales associates going viral for showing off their favorite products and answering commentor’s questions while on shift, like content creator Ava Glaurie , and Becca Bonney .
“Our first quarter marked a powerful start to the year, with revenue, margin, and earnings growth ahead of expectations and strength around the world,” Crevoiserat added. “Behind these results are advantages that compound over time, including our deep consumer understanding, data-driven approach, and global scale.”
