{"id":197178,"date":"2026-04-14T18:47:39","date_gmt":"2026-04-14T18:47:39","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/197178\/"},"modified":"2026-04-14T18:47:39","modified_gmt":"2026-04-14T18:47:39","slug":"tapestrys-tariff-mitigation-strategy-the-coach-brooklyn-bag","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/197178\/","title":{"rendered":"Tapestry\u2019s Tariff Mitigation Strategy? The Coach Brooklyn Bag."},"content":{"rendered":"

\n\tThe tariff-driven economic upheaval of the past year has had a marked effect on consumer confidence, but Kate Spade<\/a> and Coach<\/a> owner Tapestry<\/a> is still staking its forward-looking strategy on young shoppers, according to CEO Joanne Crevoiserat.<\/p>\n

\n\tThe executive spoke at the Semafor conference in Washington, D.C. on Tuesday, touting the fashion firm\u2019s ability to buck prevailing downward trends in an economic environment that has been less than fertile for growth. \u201cAt Tapestry<\/a>, we grew double digits around the world in the last quarter,\u201d she said. \u201cThat\u2019s double-digit growth in North America, double digit growth in China, and double-digit growth in Europe.\u201d<\/p>\n

\n\tThe secret? Gen Z. \u201cOur focus is on this young consumer. And people ask me all the time, \u2018Isn\u2019t this young consumer under pressure? And how is it that your business is so healthy, given the [economic] backdrop?\u2019\u201d she said. \u201cThe answer to that question is: we stay close to our consumers. We really want to understand what they\u2019re going through, how they\u2019re feeling, so that we can deliver not only great product, but experiences in marketing, and we can understand them at a deeper level.\u201d<\/p>\n

\n\tFocusing on young shoppers\u2014many of whom doubt the future prospect of owning homes or hitting the traditional financial milestones of previous generations\u2014is a strategic choice, she explained. \u201cFirst, it\u2019s authentic to who we are, as we do deep consumer research. We hear stories over and over again\u2014\u2018I remember my first Coach<\/a> bag. I bought it when I had graduated from school, and it really, I really felt like I was put together. It gave me confidence,\u2019 or, \u2018I bought this Kate bag when I got my promotion, and it made me feel great.\u2019\u201d<\/p>\n

\n\tIn an era where hope for the future is in short supply, Tapestry<\/a> believes it can provide a much-needed serotonin boost while also generating lifelong sales leads. \u201cThat brand love that\u2019s fostered for a lifetime starts with that first luxury bag purchase, so we\u2019re focused on this Gen Z consumer, as we want to earn the right to be her first luxury bag purchase,\u201d the CEO said.<\/p>\n

\n\tThe thinking goes deeper. Crevoiserat said that between President Donald Trump\u2019s International Emergency Economic Powers Act (IEEPA) tariffs<\/a> and other reciprocal duties, Tapestry has incurred over $200 million in added costs. \u201cAnd that cost pressure is real, but we did not knee jerk and say, \u2018We\u2019re just going to raise prices to offset it.\u2019 And in fact, in this fiscal year, we\u2019ve fully mitigated it,\u201d she said.<\/p>\n

\n\tThe firm has sought to shield consumers from the effects of the tariffs<\/a>, knowing that their experience with its brands\u2014Coach<\/a> and Kate Spade<\/a>\u2014often begins with a peek at the price tag.<\/p>\n

\n\t\u201cWe are focused on delivering value into the marketplace that the consumer recognizes. So we did not take price up in response. We doubled down on our capabilities to understand the consumer and deliver innovation, and that\u2019s where we leaned in,\u201d she added. \u201cWe have the supply chain that we\u2019ve developed over decades. It\u2019s enabled us to be agile and move production around the world.\u201d<\/p>\n

\n\tThen, there\u2019s product strategy. In summer of 2024, before IEEPA tariffs<\/a> became a kitchen table discussion point, Coach launched the Brooklyn handbag. Over the ensuing months, it has become \u201c[o]ne of our most popular bags, particularly for Gen Z recruitment,\u201d Crevoiserat said. \u201cWe had the insight and understanding of the consumer, but we also saw a market trend out there, and we created a bag that looked nothing like anything that we had built before, and delivered that into the marketplace at an incredible value.\u201d<\/p>\n

\n\tRanging between $295 and $395, the sleek, minimalist style has proven an accessible essential for a young shopper looking for a modest splurge. \u201cThis is a bag that is genuine leather, crafted to last\u2026 and delivers a silhouette that is very on trend, and we see the customer respond. That\u2019s how we\u2019re winning, and that\u2019s how we\u2019re mitigating the tariffs,\u201d the executive proclaimed.<\/p>\n

\n\tCoach has also leaned into the customization craze with the creation of dozens of bag charms, some priced as low as $20. \u201cThe reality is, over decades of research, the customer buys 1.2 handbags a year. So we\u2019re not going to win by just selling more handbags to the same person,\u201d she added. \u201cBag charms are a way for her to continue to come back and connect with the brand with more frequency, and we see that happening.\u201d<\/p>\n

\n\t\u201cAnd in addition, you can do that with friends. So we hear from our target consumer, the young consumer, that they crave this community aspect so and they also love shopping in stores<\/a>,\u201d she said.<\/p>\n

\n\tWhile many brands have written off the depth of Gen Z\u2019s pockets, Crevoiserat believes they\u2019re overlooking the inherent value of capturing their attention before they age into peak purchasing power.<\/p>\n

\n\t\u201cWe\u2019re seeing Gen Z in total, as a as a cohort, be more loyal,\u201d she said. \u201cThe frequency with which they\u2019re coming back is higher for Gen Z than any other population. So we hear all the time, \u2018Gen Z is fickle. They\u2019re not loyal to brands.\u2019 Well, they are, and we\u2019re seeing that in our business.\u201d<\/p>\n

\n\tWhen it comes to Kate Spade, the clear second child in the Tapestry hierarchy, Crevoiserat acknowledges there\u2019s work to do\u2014and she\u2019s hoping to revisit the Coach playbook in reviving the once-hot premium label for a new generation of shoppers. <\/p>\n

\n\t\u201cWe need to acquire this young consumer, and we need to bring the consumer with us, and that\u2019s not something that happens overnight,\u201d she said. \u201cSo we are leveraging the brand-building capabilities you see in evidence at Coach, and we\u2019re applying them to Kate. And as we\u2019re making those investments, we are seeing returns. We\u2019re seeing higher Gen Z customer acquisition, which is critical for our growth going forward.\u201d<\/p>\n

\n\tAsked about the failed merger with Capri that played out in a painfully protracted process ultimately foiled by antitrust laws, Crevoiserat said Tapestry is not looking backwards.<\/p>\n

\n\t\u201cAs it relates to the Capri proposed merger that we had, we would have been great owners of those brands. These brand building capabilities that we\u2019re building at Tapestry, I believe, are extendable to more brands. Unfortunately, that transaction was blocked,\u201d she said.<\/p>\n

\n\tThe company is now focused on drilling down on Coach and Kate Spade. \u201cI think the environment is volatile, just overall and globally, and our focus is to continue to build our current business. We have such incredible momentum at Coach,\u201d she added.<\/p>\n

\n\tMoving forward, the firm will continue to follow its north star: its shoppers. \u201cWe have to know and stay in touch with that consumer as all of these macro-economic changes impact consumers around the world differently,\u201d she said. \u201cEvery day there\u2019s a different story, and that will impact our consumers as well.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The tariff-driven economic upheaval of the past year has had a marked effect on consumer confidence, but Kate…\n","protected":false},"author":2,"featured_media":197179,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[98,100,99,13272,78599,78600,9,24,63,78601,2083],"class_list":{"0":"post-197178","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brooklyn","8":"tag-brooklyn","9":"tag-brooklyn-headlines","10":"tag-brooklyn-news","11":"tag-coach","12":"tag-consumer-insights","13":"tag-kate-spade","14":"tag-new-york","15":"tag-new-york-city","16":"tag-nyc","17":"tag-tapestry","18":"tag-tariffs"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/197178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=197178"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/197178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/197179"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=197178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=197178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=197178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}