Coach maintains leather supply amid tariffs and rising costs
US leathergoods brand Coach has maintained stable leather sourcing and manufacturing despite industry-wide concerns about tariffs and cattle shortages, according to an interview with Bloomberg.
The company’s long-standing relationships with tanneries and manufacturing partners, along with its scale and resources, have helped secure supply even as leather prices rise.
CEO Todd Kahn highlighted Coach’s strategic shift from “affordable luxury” to “expressive luxury,” a move aimed at younger consumers. Data indicates Gen Z spends around 20% more than other generations on non-essential items such as handbags and accessories. This focus has supported strong growth, particularly in international markets where tariffs have less impact.
To offset higher costs, Coach has reduced discounting while maintaining price points, increasing average unit retail. The Leather and Hide Council of America projects that basic leather prices will remain 7–10% higher than a year ago.
Mr Kahn noted that Coach is outperforming competitors at its price point, consolidating its position in accessible luxury.
