Business
Coach CEO Todd Kahn: ‘We can win with a Chinese consumer because of American design’
Good morning. Asia editor Nick Gordon here, filling in for Diane Brady.
Coach CEO Todd Kahn has much to be happy about. The brand is surging on a wave of social media-fueled demand, as Gen-Z shoppers flock to products like the iconic Tabby bag. Coach is the most successful division of parent company Tapestry (No. 534 on the Fortune 1000), reporting $5.6 billion in revenue in its most recent fiscal year (ended June 28), compared to $7 billion for the broader company. Shares are up over 75% for 2025 so far.
Kahn has led Coach since 2020, when he took over as interim CEO and brand president—an appointment that was made official a year later. He joined Tapestry in 2008 as its general counsel and secretary, following previous roles in the apparel and fashion industry.
I sat down with Kahn at Coach’s new coffee shop in Singapore’s Sentosa Island earlier this month. Similar to how Ralph Lauren is using Ralph’s Coffee as an entry point for selfie-hungry Gen Z consumers, Coach is piloting a slickly-designed spot for young Singaporeans. Over a cup of chili crab soft serve ice cream, we talked about tariffs, selling American brands to Chinese consumers, and how social media has built the next generation of Coach fans.
On the escalation of tariffs. Kahn and I met a few days after U.S. President Donald Trump threatened new 100% tariffs against China. (Trump has since moderated his tone.) Coach doesn’t manufacture in China, yet Kahn noted that “business generally does better when there’s more certainty. The lack of certainty makes it really hard to plan, to invest and do things.” Kahn is optimistic that Coach’s focus on a smaller number of affordable, yet consistent products puts it in a better place to manage cost and price increases than its competitors. “I’m much happier about being in the $300 to $600 range than if I’m at $3,000 now having to deal with tariffs.”
On selling in China. Tapestry grew its Greater China revenue by 5% to hit $1.1 billion in its last fiscal year, even as other foreign brands struggle to fend off affordable domestic brands. “A great bag is a great bag everywhere,” Kahn said that Coach’s brand positioning “aligns really well with the young Chinese consumer.” He pointed out that Coach goes for breadth and depth in its research, combining big data from its millions of customers with “ethnographic work” following consumers into their homes and shops. “This administration should value the fact that we can win with a Chinese consumer because of American design. That combination is very powerful,” Kahn said.
On connecting with Gen-Z. Coach’s bags have been a hit on social media, which Kahn credits to building a “holistic story” around the brand’s products and retail experience. “If you’re just [focusing] on product, but the environment isn’t inviting for Gen-Z, you’re not going to capture them,” he said. “Fashion has always looked to the youngest generation for inspiration.”
Case in point: As we end our conversation, Kahn points out two young shoppers taking a selfie in front of a product display, chili crab ice cream in hand.
If you want to hear more insights about design and business, be sure to check out Fortune Brainstorm Design, to be held in Macau on Dec. 2. We’ve previously featured famed designers like industrial designer Tom Dixon, former Ford chief designer Anthony Lo, and Gensler co-CEO Elizabeth Brink. Stay tuned for more news on this event in the months to come.
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Contact CEO Daily via Diane Brady at diane.brady@fortune.com
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CEO Daily is compiled and edited by Joey Abrams and Claire Zillman.
