Across Coach and Kate Spade, the core leather goods category fueled growth, attracting consumers through accessible pricing. At Coach, handbag AUR — the average selling price of an item over a period — increased by a low double-digit percentage; a focus on bags ranging between $200-$500 will continue. Footwear also supported growth, up more than 20% in the quarter thanks to demand for Coach’s Margot pump, as well as traction in sneakers.
By region, Greater China led the way, with revenues up 39% in Q1. “Other Asia” — including Australia, South Korea, Malaysia, Singapore, and other countries mostly in Asia — followed at 23%, with Europe close behind at 22%. “Other” — representing mostly royalties earned from licensing and sales in the Middle East — was up 11%, followed by North America and Japan, both up 4%.
For Coach CEO Todd Kahn, Japan’s return to growth was a compelling example that the brand’s strategy had paid off. “We worked hard the last year and a half to reset that market and focus on a younger consumer and relevant marketing,” he said. “It worked, and that’s what gives us confidence that we can continue to replicate this strategy over and over again across the world.”
Kahn added that Coach’s North America revenues continue to grow, while Gen Z remains a core focus for Coach — and Kate Space. “When we win with Gen Z, we tend to win with every other cohort as well,” said Kahn.
