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Coach Handbags Now Designed by AI Because Humans Were Too Slow

KEY POINTS

  • •On a Thursday earnings call, Tapestry's CEO detailed how Coach and Kate Spade integrate AI to accelerate design.
  • •Coach’s Tabby handbag became a hit with Gen Z, driving a 25% sales increase responsible for much of the $2.5 billion revenue.
  • •Kate Spade intentionally cut back promotional activities leading to a 14% revenue decline to $360 million last quarter.

On a mundane Thursday earnings call that could lull insomniacs to sleep, Tapestry's CEO Joanne Crevoiserat revealed the glamorous secret behind Coach and Kate Spade's soaring $2.5 billion Q2 revenue: artificial intelligence. Designers begin the archaic ritual of hand-drawn sketches—because robots apparently can't capture despair yet—but quickly switch to AI for speedy color tweaks and endless iterations. Coach's Tabby handbag wowed Gen Z with a 25% sales boost, while Kate Spade tangled itself in a deliberate promo cutback, dropping 14% to $360 million. Meanwhile, LVMH and Gucci dabble in AI mood boards, and a silk artist in Singapore uses ChatGPT for Instagram visuals but politely refuses to let robots touch actual art, proving we're all terrible drivers of creativity and spreadsheets alike.

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Source: Businessinsider | Published: 2/6/2026 | Author: Aditi Bharade