Tapestry’s Rebrand Is Outperforming the Luxury Giants
Tapestry (ticker: TPR), best known for its Coach brand, is rewriting the rules of luxury—quietly outpacing legacy European players like LVMH and Kering.
Coach’s transformation from “mom’s bag” to “my first luxury” is paying off. The company’s stock has climbed 32% in 2025 so far, while LVMH has dropped 23%—a divergence fueled by Coach’s standout Q3 results. Revenues grew 6.9% YoY; EPS surged 58%. Coach led the way with $1.3B in sales (+15% YoY), offsetting declines in Kate Spade and Stuart Weitzman.
Europe saw breakout growth at +35%, driven by viral hits like the Tabby and Brooklyn lines. These products—priced between €300–600—blend trendiness with practicality, helping Coach land in the Lyst Top 5 (ahead of Prada in brand preference among Gen Z).
A Luxury Brand That Gets the Internet
While traditional luxury brands remain cautious about digital exposure, Coach leans in. On TikTok and Instagram, its “It Bags” power user-generated short-form content that drives organic buzz. Behind the scenes, Coach runs an advanced CRM engine—tracking clicks, searches, and purchases across online/offline platforms to deliver personalized deals, rewards, and product recommendations in real time.
The results? Online revenue has jumped from 12% to over 20% in three years, and digital repurchase rates now exceed 50%.
Value Over Vanity
Unlike rivals banking on price and scarcity, Coach is expanding its appeal by offering attainable luxury with functional appeal. Its lower reliance on China (15–20% of sales) compared to LVMH (30–40%) also provides strategic diversification.
And despite strong performance, Tapestry remains attractively priced. Its current P/E ratio of 22.8x trails competitors like LVMH (19.45x) and Kering (21.93x)—even after their stocks fell in 2025.
The Takeaway
Tapestry is not chasing prestige. It’s building brand love—through access, data, and consistency. In a crowded luxury space, that may be the most modern strategy of all.
