Sales Surge for Coach and Ralph Lauren, but Kate Spade Struggles

In the world of luxury fashion, some brands are soaring while others are struggling to maintain their momentum. Coach and Ralph Lauren have reported impressive sales growth, while Kate Spade has been grappling with a decline in revenue. Let's dive into the details and explore the factors driving these trends.



Coach, a leading luxury accessories brand, has seen remarkable success with its expressive luxury positioning. The brand's focus on attracting younger consumers, particularly Gen Z and millennials, has paid off with significant gains in unaided awareness, consideration, and purchase intent. The Tabby bag, introduced in the fourth quarter, almost doubled in sales compared to the previous year, demonstrating the brand's appeal to younger consumers. Coach's strong performance is reflected in its record annual earnings, with sales surpassing $5 billion, up 3% year-over-year.

Ralph Lauren, another iconic luxury fashion brand, has also reported impressive sales growth. In the first quarter of fiscal 2025, the company's revenue increased by 11% to $2.1 billion, driven by strong performance across all regions. Europe and Asia, in particular, showed notable growth, with China and Japan being standout markets. Ralph Lauren's focus on international markets, combined with its investment in key marketing campaigns and brand elevation, has contributed to its sales increase. However, the company faces challenges in maintaining this growth, such as North America wholesale declines and over-distribution of the brand in the region.



In contrast to Coach and Ralph Lauren, Kate Spade has been struggling with a decline in sales. The brand's revenue fell by 6% in fiscal 2024 and 14% in fiscal 2025. Several factors have contributed to this decline, including the softening North American business, lack of brand building, and intense competition in the accessible luxury handbag market. To reverse this trend, Tapestry, the parent company of Kate Spade, has hired Eva Erdmann as the president and CEO of the brand, effective October 2024. This move is expected to help accelerate growth at the brand amid consistent revenue declines.

In conclusion, the luxury fashion market is dynamic, with some brands experiencing remarkable growth while others face challenges. Coach and Ralph Lauren have successfully implemented strategies to drive sales growth, while Kate Spade must address its declining revenue and regain market share. As the market evolves, brands must adapt and innovate to maintain their competitive edge.