Bloomberg Talks: Coach President & CEO Todd Kahn on Gen Z, New Customers & Power of Pricing

Date: February 18, 2026
Host: Bloomberg
Guest: Todd Kahn, President & CEO, Coach

Episode Overview

In this episode, Todd Kahn, CEO of Coach, joins Bloomberg inside Coach House on Fifth Avenue to discuss the brand’s recent revival and rapid growth, fueled by a targeted focus on Generation Z. Kahn shares insights into understanding Gen Z and Gen Alpha, strategies for engaging new customers globally, Coach’s disciplined product and pricing approach, and the critical role of brand experience, marketing, and global expansion—especially in China and Europe. The conversation mixes data-driven decision-making with creative instinct and explores how Coach maintains relevance, balanced exclusivity, and pricing power in the evolving luxury market.

Key Discussion Points and Insights

1. Understanding and Engaging Generation Z

• Coach’s Rebranding and Gen Z Focus

  • Insight: Coach intentionally shifted from being “a brand for everyone and hence a brand for no one” to honing in on Gen Z. (00:38)
  • Methodology:
    • Relies on both “big data” (millions of customer interactions) and “little data” (intimate consumer interactions like shop-alongs).
    • Sees the role of data as enhancing creative gut feeling:

      “I don’t want to supplant the gut of our creatives. I just want to create an informed gut.” – Todd Kahn (01:50)

• Balancing Data and Creativity

  • Inspired by former CEO Lou Frankfurt's motto: “Never assume, always ask.” (02:02)
  • The sweet spot is using consumer insight to inform, not dictate, creative direction:

    “We don’t want to outsource our commercial, business, or creative judgment. Finding that balance is where the magic takes place.” – Todd Kahn (02:40, paraphrased)

• Gen Z’s Shopping Mentality & Global Homogenization

  • Gen Z is globally connected; trends in New York, Shanghai, or Seoul are quickly shared, leading to similar preferences worldwide. (05:41)
  • Gen Z values both experiences and physical items, but are more thoughtful and well-informed shoppers.
  • Shopping is increasingly a social and community event. (06:20)

2. Growth, Brand Platforms & Customer Lifecycle

• Strength in Brand Platforms

  • Diverse product “families” (Tabby, Terry, New York) drive growth while avoiding over-saturation:

    “We have the Tabby family, we have the Terry family, we have the New York family. I call it TNT, which leads to explosive growth.” – Todd Kahn (07:47)

  • Coach leverages Y2K nostalgia while offering avenues for ongoing product innovation (pillow Tabby, new material versions).

• Addressing Saturation Risks

  • Coach intentionally creates varied ways for self-expression to avoid brand fatigue, especially important in the social media era. (07:34)

• Focus on Acquisition and Retention

  • Coach added 2.9 million new customers in the last holiday quarter; many were Gen Z (09:35)

    “If you have a good first date, you then have multiple dates in the future. … I can’t tell you the number of times I’ve heard somebody say my first bag was a Coach bag.” – Todd Kahn (09:50–10:08)

  • Continued retention is less critical if the pace of new customer acquisition is strong.

• SKU Discipline and Product Longevity

  • Coach has reduced its SKUs by 40% to maintain focus and avoid product fatigue.
  • Rather than cycle out slowing products, they innovate existing franchise (e.g., Tabby’s transformation into Pillow Tabby). (11:08)

3. Reaching Gen Alpha and Building Brand Loyalty

• Gen Alpha’s Spending and Influence

  • Although younger and still reliant on parents, Gen Alpha displays business and tech savvy, often with side hustles, and are digitally native. (13:26)

    “Not only are they tech savvy but they’re kind of business savvy too.” – Todd Kahn (13:45)

• Accessible Price Point as a Competitive Advantage

  • Coach deliberately emphasizes its $200–$500 “sweet spot”:

    “We don’t want to miss out on the opportunity to be that first bag for that Gen Alpha or that Gen Z customer to engage them in a price point that makes sense.” – Todd Kahn (14:55)

• Brand Experience Innovations: Coach Coffee Shops

  • Expanding to 8 Coach-branded coffee shops in North America and a global total of 20+ (15:22)
  • Attracts younger shoppers, extends in-store linger time, and fosters unique brand moments (Tabby cake as a social media magnet).

    “Little Miss Jo is compelling. We have unique merchandise you can only get at Coach coffee shops … the linger time for the shoppers … is significantly increased.” – Todd Kahn (15:35–16:12)

4. Marketing, Brand Ambassadors, and Storytelling

• Significant Increase in Marketing Spend

  • Marketing budget rose from 3% of sales pre-2019 to 11% currently (16:46)
  • Focus has shifted to mid and upper funnel long-form brand campaigns, not just digital lower-funnel ads.

    “As I said to my CMO … we'll spend close to a billion dollars next year telling our story in long format fashion in key markets.” – Todd Kahn (17:41)

• Brand Ambassador Strategy

  • Uses a “constellation” of 20–30 ambassadors (“Friends of Coach” model) rather than relying on a single face (19:21)

    “We want them to look like our customer base … and we like working with nice people who are engaged, who truly represent the values of our brand.” – Todd Kahn (19:40)

5. Pricing and Channel Strategy

• Breaking Free of the Promotional Cycle

  • Coach has stopped distinguishing between “outlet” and “retail,” removing “outlet” from store names and selling full-priced products at all locations. (21:11)
  • Responds to Gen Z’s view: “They don’t see channels, they see brands.”
  • Strategic product placement in all stores, facilitating desire for hero products while making entry-level options aspirational (22:34)

• Pricing Power and Value Perception

  • Margins are the highest in Coach’s history. Price increases are thoughtful, based on real consumer value, not merely to chase inflation or competitor moves:

    “I find it offensive that somebody has to save four months of salary to buy a handbag. I love that you can walk into a coach store anywhere in the world and buy something compelling.” – Todd Kahn (31:58)

• Resilience Against Supply Chain Challenges

  • Deep, long-standing relationships with tanneries and manufacturers mitigate risks from tariffs and shortages (25:35)
  • Increasing presence in international markets reduces exposure to U.S.-specific import pressures (26:15)

6. International Growth: China and Europe

• China Expansion

  • Plans to open ~100 new stores in China over “the next few years” (27:33)
  • Flexible store format allows Coach to enter young, street-level neighborhoods, not just luxury malls:

    “If traditional European luxury is on the left and right of me, it’s wholly irrelevant to me.” – Todd Kahn (28:44)

• Role of Seasonal and Timely Campaigns

  • Leveraging moments like the Lunar New Year (Year of the Fire Horse) for unique product collaborations (e.g., with Chinese street brand Clot), enhancing relevance with local youth (29:07)

• Europe: Competing with Old Luxury

  • Coach’s authenticity, heritage, and value equation win over European customers, many of whom are new to the category.

    “We grew the category. I don’t think that’s just people who would have bought a traditional European luxury bag. I think we’re bringing new people into the category.” – Todd Kahn (30:13)

  • European rivals' price hikes have opened up more white space for Coach in the $200–$500 segment, but Coach’s pricing is not reactionary.

Notable Quotes & Memorable Moments

• The Informed Gut

  “I don’t want to supplant the gut of our creatives. I just want to create an informed gut.”
  – Todd Kahn (01:50)

• On Brand Focus

  “We were too much often considered a brand for everyone and hence a brand for no one. And we became extraordinarily focused on Gen Z.”
  – Todd Kahn (00:52)

• On Platform Product Families

  “The Tabby family, the Terry family, the New York family... I call it TNT—which leads to explosive growth.”
  – Todd Kahn (07:47)

• On Loyalty and First Impressions

  “If you have a good first date, you then have multiple dates in the future.”
  – Todd Kahn (09:50)

• On Pricing Philosophy

  “I find it offensive that somebody has to save four months of salary to buy a handbag. That’s not a business I want to be in.”
  – Todd Kahn (31:58)

Timestamps for Key Segments

• 00:38 – Coach’s focus on Gen Z and data-driven insights
• 02:02 – Balancing consumer input and creative leadership
• 05:41 – The global Gen Z shopper and experience vs. product
• 07:34 – Avoiding brand saturation and driving engagement
• 09:35 – New customer acquisition and lifetime value strategy
• 11:08 – SKU reduction and product lifecycle management
• 13:18 – Reaching Gen Alpha and building early brand loyalty
• 15:22 – Role of Coach coffee shops in customer experience
• 16:46 – Growth in marketing spend and campaign strategy
• 19:21 – Coach’s “constellation” model for brand ambassadors
• 21:11 – Channel evolution: From outlet to unified Coach brand
• 24:03 – Pricing power, inflation and value-based adjustments
• 25:35 – Sourcing, supply chains, and margin resilience
• 27:33 – China store expansion plans
• 29:07 – Seasonal moments and China campaign partnership
• 30:13 – European growth and Coach vs. traditional luxury
• 31:58 – Coach’s value approach in the context of luxury

Episode Tone and Closing Takeaway

Todd Kahn speaks with enthusiasm, humility, and pragmatism, blending data acumen with a deep respect for creativity and brand purpose. He projects Coach’s commitment to accessibility, inclusivity, and authentic customer connections, whether through product, experience, or ethical pricing. His vision for Coach centers on being the “first bag” for global youth, while maintaining disciplined growth and true brand value.