“Our price and brand positioning of expressive luxury is truly the Goldilocks of brand positioning in our industry,” Todd Kahn, CEO and brand president of Coach, told analysts on Wednesday. “On the one hand, we’re aspirational in design, fashion, and quality, yet extremely approachable in price positioning.”
Coach, the engine of it all, posted constant currency revenue growth of 29%. North America rose 27%. Greater China surged 58%. Europe climbed 27%. The brand welcomed 2 million new customers in the quarter alone, with Gen Z acquisition accelerating “meaningfully,” according to CEO Joanne Crevoiserat.
“We can literally add millions of new customers every quarter for the next 10 years, and we’ll just scratch the surface,” Kahn said.
At the heart of Tapestry’s growth thesis is a bet on what executives call the “first luxury bag” milestone—the idea that Coach can own the emotional and commercial moment when a young consumer makes their inaugural foray into luxury goods.
The product strategy backing all of it is disciplined to the point of being almost counterintuitive: less variety, more impact.
“We’re doing it with fewer SKUs,” Kahn said. “We’re doing it in a much more controlled manner than ever before, and we’re doing it by amplifying major families.”
That means doubling down on marquee franchises—the Tabby, the New York family (Brooklyn, Empire, and the newly launched Chelsea), plus Teri, Laurel, and Rowan—while engineering scarcity through limited drops that sell out in days.
The creative stability behind the assortment—Kahn credits longtime creative director Stuart Vevers and a team that has been together for years—is itself a competitive moat, he argued.
“We’re just getting started,” she said.
“We also know that turnarounds take time, and the path to long-term growth is not always linear,” Crevoiserat said.
For now, Tapestry’s narrative—and its stock story—belongs to Coach. And executives are betting that as Generation Alpha ages into the luxury market behind Gen Z, the addressable opportunity only grows.
“Soon there’ll be Generation Alpha, and they’ll be part of this new customer acquisition strategy,” Crevoiserat said. “That’s the formula for us.”
For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.
