Coach, the iconic luxury handbag brand, has made a remarkable comeback in recent years, regaining its position as a top contender in the US luxury handbag market. After falling out of favor in the 2010s, the brand has successfully revitalized its image, particularly among Gen Z consumers, and is now experiencing significant growth.
In the early 2000s, Coach was a staple in the fashion world, with its monogrammed design and double C logo adorning the arms of teens and celebrities alike. However, by the 2010s, the brand's luxury reputation had suffered, and sales plummeted. The company's market cap dropped by about 60% between its 2012 peak and mid-2014.
But Coach's fortunes have changed, thanks in part to its ability to connect with younger generations. According to a fashion expert, "Fashion always looks to the youngest generation for inspiration, and then every other generation follows. So we knew if we could win with the timeless Gen Z, we could win with everyone."
In 2024, Coach surpassed Michael Kors to capture second place in the US luxury handbag market, and was named the fifth hottest fashion brand in the fourth quarter of 2025, climbing ten spots from its previous ranking. Industry analysts have taken notice of the brand's impressive turnaround, with one analyst noting that it's "really rare to take a kind of mediocre mall brand that has been tarnished and then elevate it to be a credible luxury contender."
Coach's history dates back to 1941, when it was founded as a men's leather goods business. Over the years, the brand transformed into a women's fashion house, opening its flagship store on Madison Avenue in 1981 and expanding to boutiques in Macy's department stores across the country. However, as logo mania fell out of favor, Coach suffered from heavy discounting and overpresence in outlet malls, which cheapened its reputation.
To course correct, Coach hired a new executive creative director, Stuart Vevers, who introduced a more youthful aesthetic and shifted the brand away from heavy logo designs. The company also closed underperforming stores, moved away from discounting, and made strategic acquisitions, including the purchase of designer footwear company Stuart Weitzman and former rival Kate Spade.
Under the leadership of CEO Todd Kahn, Coach has focused on fewer, high-quality products and storytelling, with a emphasis on its timeless Gen Z client. The brand has also leveraged social media campaigns with influencers and celebrities, and rebranded older pieces for a new audience. As a result, Coach's sales have grown 16% in 2021, with 74% of parent company Tapestry's revenue coming from the brand.
Coach has also benefited from Gen Z's love for customization, with its brooches and bag charms being hits. The brand has experimented with in-store experiences, launching immersive concept stores and coffee shops to boost Gen Z visits. In Q3 2025, Coach's revenue grew 15% compared to the same quarter a year prior, outperforming the industry in Europe and China.
While Coach faces some risks, including the rise of social media and looming tariffs, the brand's diversified supply chain and limited exposure to China have helped mitigate these threats. Looking ahead, Coach may consider diversifying its offerings to compete with peers, but for now, the brand is taking a slow and measured approach.
As a marketing executive noted, "We see so much opportunity, just on the demographics. If you think about next year and for the next five years, there will be 25 million women who turn 18 globally, who can afford over $100 handbag. When you just think about that opportunity to bring them into Coach, to have that first bag be a Coach bag, that's tremendous growth."
In conclusion, Coach's remarkable comeback is a testament to the brand's ability to adapt and evolve in an ever-changing fashion landscape. With its focus on quality, customization, and Gen Z appeal, Coach is well-positioned for continued growth and success in the luxury handbag market. As the brand continues to innovate and expand its offerings, it's clear that Coach is back, and it's here to stay.
