View on Amazon

The Remarkable Comeback of Coach: From Mall Staple to Luxury Contender

The Rise and Fall of an Icon

In the early 2000s, Coach purses were ubiquitous. From teens at the mall to celebrities on the red carpet, the monogrammed double-C logo was a status symbol. Founded in 1941 as a men’s leather goods business, inspired by the enduring patina of a baseball glove, Coach transformed into a women’s fashion house by the 1980s. Its flagship store opened on Madison Avenue in 1981, followed by boutiques in Macy’s department stores nationwide. By the late 1990s, Coach defined “accessible luxury” with high craftsmanship at affordable prices, and its logo-covered bags became an “It Girl” must-have.

But by the 2010s, Coach’s star had dimmed. Logo mania fell out of favor, and the brand’s heavy discounting and over-presence in outlet malls tarnished its luxury reputation. Consumers gravitated toward competitors like Tory Burch, Michael Kors, and Kate Spade. Between January 2012 and January 2015, Coach shares lost 40% of their value, and the company’s market cap plummeted by about 60% from its 2012 peak to mid-2014. Routine 20% off coupons and diluted brand heritage dragged down its equity.

Buy now

A Strategic Reinvention

By 2013, Coach recognized the need for change. With nearly all North American sales direct-to-consumer, the company leveraged long-term data to pivot. It hired Stuart Vevers, a creative director from high-fashion brands Mulberry and Loewe, to introduce a youthful aesthetic and move away from heavy logo designs. Coach closed underperforming stores, scaled back discounting, and refocused on quality.

The company also made bold acquisitions: Stuart Weitzman for $574 million in 2015 and Kate Spade for $2.4 billion in 2017. That October, Coach Incorporated rebranded as Tapestry, signaling a new era. “They pulled everything back, went completely back to the drawing board,” industry analysts noted, praising the clear plan and message.

Buy now

Winning Gen Z and Beyond

Coach’s resurgence has been driven by Gen Z, whose influence in fashion often sets trends for older generations. “If we could win with the timeless Gen Z, we could win with everyone,” Tapestry executives stated. In 2024, Coach surpassed Michael Kors to claim second place in the U.S. luxury handbag market. By Q4 2025, it was named the fifth hottest fashion brand, climbing ten spots from its prior ranking. The Brooklyn bag was dubbed the hottest product of Q4 2024 by global shopping platform Lyst, with overall demand for Coach products up 332% year-over-year.

Under CEO Todd Kahn, who took the helm in 2021, Coach’s sales grew 16% that year, 15% above pre-pandemic levels. In Q3 2025, revenue rose 15% year-over-year, with a 77.1% gross margin. Coach outperformed competitors in Europe and China, adding nearly 900,000 new customers in North America, over two-thirds of whom were Gen Z and Millennials. Tapestry’s market cap has expanded by about 140% over the past five years, while luxury conglomerate LVMH reported declining sales.

Buy now

Nostalgia, Customization, and Innovation

Coach capitalized on the Y2K fashion revival, rebranding classic designs and launching bags at various price points to suit every budget. “Should someone have to save 3 or 4 months of salary for a handbag?” Kahn asked, emphasizing Coach’s commitment to accessibility. Social media campaigns featuring influencers like Megan Thee Stallion and Lil Nas X boosted best-sellers like the Brooklyn, Rogue, and Tabby bags.

Gen Z’s love for customization fueled demand for Coach’s brooches and bag charms. The brand also introduced immersive “Coach Play” concept stores and Coach coffee shops to enhance in-store experiences. These efforts have solidified Coach’s appeal among younger shoppers while maintaining its heritage of quality craftsmanship.

Coach Reversible Women’s Belt

Global Growth and Challenges Ahead

Coach generates about 60% of its sales in North America but is expanding internationally, particularly in Asia, with nearly 1,000 stores across 21 countries. Its diversified supply chain, with no single supplier accounting for more than 10% of production, mitigates risks like looming tariffs, which could reach 49% on Asian imports. Long-standing supplier relationships further insulate the brand.

However, competition from small, direct-to-consumer brands on social media poses a threat. Coach remains cautious about rapid category expansion, prioritizing its core offerings—women’s handbags and accessories, which account for 70% of sales. “I like that Coach is being slow and measured,” an analyst remarked, noting that overextension risks diluting brand equity.

A Bright Future

Coach’s turnaround is a rare feat in fashion, elevating a “mediocre mall brand” into a credible luxury contender. With 25 million women turning 18 globally in the next five years in markets where Coach competes, the brand sees tremendous growth potential. “To have that first bag be a Coach bag—that’s tremendous opportunity,” Kahn said. By staying true to its heritage while embracing innovation and accessibility, Coach is poised to thrive in the evolving luxury landscape.

Subscribe to my email newsletter now.

Listen to my articles now. Click the below link

Listen now

Buy my latest book on Amazon from here. Buy from Amazon

Affiliate Disclaimer:
This article may contain affiliate links, which means I may earn a small commission at no additional cost to you if you click through and make a purchase. As an affiliate, I only recommend products and services that I genuinely believe will add value to your holiday season. Your support helps me continue to create helpful content—thank you!