Tapestry Unveils $4 Billion Growth Plan, Targets Gen Z Luxury Market

Tapestry Doubles Down on Gen Z and Growth with New Strategy New York City-based Tapestry, Inc., parent of luxury brands Coach and Kate Spade New York, has unveiled a three-year strategy focused on profitable growth and strong shareholder returns. The Amplify plan, announced ahead of the company's investor day, aims to drive $4 billion in shareholder returns by 2027. According to CFO and COO Scott Roe, the strategy is anchored on four pillars: building emotional connections with consumers, particularly Gen Z; advancing fashion innovation; delivering compelling global experiences; and fostering an agile, consumer-focused culture. These priorities build on proven strategies, especially at Coach, Roe said in a recent interview. The Amplify plan targets the growing demand for luxury goods among younger generations, with millennials and Gen Z increasingly choosing Coach, driving a beat for the quarter that ended January 2024. "We're seeing a significant shift in consumer behavior, with younger consumers valuing experiences over material possessions," Roe explained. "Our strategy is designed to meet this changing landscape head-on." Tapestry's decision to focus on Gen Z comes as no surprise, given the demographic's growing purchasing power and influence. According to a recent report by McKinsey & Company, Gen Z will account for 27% of global consumer spending by 2025. The Amplify plan also reflects Tapestry's commitment to innovation, with Roe highlighting the company's efforts to integrate technology into its products and services. "We're investing heavily in digital capabilities, from e-commerce platforms to social media engagement," he said. "Our goal is to create seamless experiences that meet consumers where they are." Tapestry's investor day, held on Tuesday, provided a platform for Roe to outline the company's vision and strategy. The event was attended by investors and analysts, who were eager to hear about the company's plans for growth. The Amplify plan has been met with optimism from industry observers, who see it as a bold move to capture market share in the competitive luxury goods sector. "Tapestry is taking a calculated risk by doubling down on Gen Z," said one analyst, who wished to remain anonymous. "But if executed correctly, this strategy could pay off big time." As Tapestry embarks on its new strategy, investors will be watching closely for signs of progress. With a market capitalization of over $10 billion, the company has significant resources at its disposal to drive growth and deliver shareholder returns. In conclusion, Tapestry's Amplify plan represents a significant shift in the company's approach to growth and profitability. By targeting Gen Z and investing in innovation, the company is positioning itself for long-term success in the luxury goods sector. As Roe noted, "Our goal is to create a sustainable business model that delivers value to our shareholders while meeting the evolving needs of our consumers." *Reporting by Fortune.*