Coach's parent company says Gen Z's love for bag charms is boosting its quarterly earnings

Coach is known for its handbags, but its small dangly keychains and trinkets are boosting its business, too.

The CEO of Coach's genitor company, Tapestry, Joanne Crevoiserat, spoke successful an net telephone connected Thursday astir the occurrence of container charms.

"Our container 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 alteration mostly successful size and form, from miniature stuffed toys and artifact figurines to beaded chains. Style experts BI antecedently spoke with said charms relation arsenic a mode to explicit the wearer's individuality and personality.

Coach has a wide enactment of charms, ranging from $20 for a simple bow charm to $195 for the spider container charm. It besides sells a postulation of metallic chains that tin beryllium hooked onto container straps.

The Cherry Bag Charm, which Crevoiserat called a "Gen Z favorite," retails connected Coach's website for $95.

Crevoiserat's comments travel arsenic retail brands person been betting large connected container charms to triumph the enactment of younger customers. Brands from KFC to Balenciaga person released container charms — either successful the signifier of constricted variation drops oregon imperishable collections.

Indeed, Coach's stake connected container charms seems to beryllium paying disconnected — Crevoiserat said astir 70% of the Coach's 900,000 caller customers successful North America were Gen Z and millennials.

Representatives for Tapestry did not respond to a query from Business Insider connected the magnitude of income the container charms brought successful in the latest quarter.

Tapestry reported a 7% gross summation successful its latest 4th net compared to the twelvemonth before, with $1.58 cardinal successful sales.

Coach, successful particular, saw a 13% year-on-year growth, with income of much than $1.29 billion. The marque has 324 stores successful the US and 599 internationally.