Coach's parent company says Gen Z's love for bag charms is boosting its quarterly earnings
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- Coach's bet on bag charms is paying off.
- The CEO of Coach's parent, Tapestry, said the brand's bag charms and straps contributed to its success.
- She said Coach's $95 Cherry Bag Charm was a "Gen Z favourite."
Coach is known for its handbags, but its little dangly keychains and trinkets are boosting its business, too.
The CEO of Coach's parent company, Tapestry, Joanne Crevoiserat, spoke in an earnings call on Thursday about the success of bag charms.
"Our bag charms and straps added to our success, providing consumers with further opportunities for self-expression, with the 'Cherry Bag Charm' remaining a Gen Z favorite," Crevoiserat said to investors.
Bag charms vary largely in size and form, from miniature stuffed toys and toy figurines to beaded chains. Style experts BI previously spoke with said charms function as a way to express the wearer's identity and personality.
Coach has a wide selection of charms, ranging from $20 for a simple bow charm to $195 for the spider bag charm. It also sells a collection of metallic chains that can be hooked onto bag straps.
The Cherry Bag Charm, which Crevoiserat called a "Gen Z favorite," retails on Coach's website for $95.
Crevoiserat's comments come as retail brands have been betting big on bag charms to win the support of younger customers. Brands from KFC to Balenciaga have released bag charms — either in the form of limited edition drops or permanent collections.
Indeed, Coach's bet on bag charms seems to be paying off — Crevoiserat said nearly 70% of the Coach's 900,000 new customers in North America were Gen Z and millennials.
Representatives for Tapestry did not respond to a query from Business Insider on the amount of sales the bag charms brought in in the latest quarter.
Tapestry reported a 7% revenue increase in its latest quarter earnings compared to the year before, with $1.58 billion in sales.
Coach, in particular, saw a 13% year-on-year growth, with sales of more than $1.29 billion. The brand has 324 stores in the US and 599 internationally.