Louis Vuitton Sales Slide, but Coach Charges Ahead Alone With 16% Growth [The Luxury Price Story]

[Financial News] U.S. fashion brand Coach is winning over millennials and Gen Z by putting young stars such as Hollywood actor Elle Fanning and singer SOYEON, a member of the group i-dle, front and center—and continuing to grow on its own despite a slump in the global luxury market.
According to Asia Economy and other outlets on the 8th, Tapestry, the parent company of Coach and Kate Spade, announced on the 5th that Coach’s sales in the first quarter of fiscal 2027 had risen 16% from the same period a year earlier. Sales in China jumped 43%, and group-wide sales increased 11% even as Kate Spade’s sales fell 10% over the same period, with Coach effectively driving the group’s growth.
This is a stark contrast with the performance of major luxury companies. Sales in the fashion and leather goods division of LVMH, the world’s leading luxury group, fell 5% in the third quarter of this year from a year earlier. Kering, the French luxury group that owns Italian luxury brand Gucci, and French luxury brand Hermès are also struggling amid slowing consumer spending in China. Consumer fatigue with repeated price increases and economic uncertainty are also weighing on the luxury market.
Coach’s marketing has squarely targeted younger consumers. Its spring campaign, “Explore Your Story,” featured miniature book-shaped bag charms inspired by literary works, with young stars from various countries, including Elle Fanning and SOYEON, serving as models.
Founded in 1941 in a small leather workshop in Manhattan, New York, U.S., Coach made a name for itself with soft, durable leather inspired by baseball gloves. Stewart Vevers, who joined the brand in 2013 as creative director, is widely credited with playing a major role in its recent rejuvenation.
Vevers infused traditional leather goods with American pop culture and expanded the product range to include clothing, shoes and accessories. Standout examples include the Tabby bag, a modern reinterpretation of an archival 1970s design, and the Brooklyn bag, which offers ample storage space. The consumer trend of expressing individuality by adding key rings and charms to bags has also helped boost sales.
Competitive pricing is also considered a strength. Coach’s core price range is $200–$500 (about 270,000–680,000 won), making its products relatively accessible compared with ultra-high-end luxury goods that cost several million won.
As luxury goods become more expensive, analysts say Coach is establishing itself as an alternative luxury brand by offering reasonable prices and a youthful sensibility.
Neil Saunders, an analyst at consulting firm GlobalData, said, “Coach has succeeded in naturally weaving the brand into the culture and lives of young consumers, and that is starting to pay off.”
[email protected] Kim Su-yeon Reporter