Tapestry Boosts Stake to 10% in Recycled Leather Innovator Gen Phoenix

Tapestry moves towards sustainability. The U.S. group that owns Coach has increased its stake in recycled leather manufacturer Gen Phoenix to 9.9% as part of a $15 million financing round.

With this investment, by which Tapestry quadruples its weight in Gen Phoenix, according to Reuters, the company strengthens its stake in the company and its objective to reach younger users, those belonging to Generation Z and who are more attracted to sustainable products.

The two groups partnered for the first time in 2022 with the launch of Coach’s Coachtopia line, already targeted at Generation Z. The products were designed with 50% recycled leather fibers from waste supplied by Gen Phoenix.

Tapestry raised its forecast for the third time this year after boosting its profit by 45%

The leather company estimates that its materials contain up to 77% recycled materials and are made from raw materials that meet quality requirements. The main material they work with is leather, which they supply to the international footwear industry.

Tapestry, which at the beginning of the year began a divestment process to focus on its main brand, Coach, after the agreement that finally did not take place with the Capri group (owner of Michael Kors and ex-owner of Versace), closed the third quarter with sales of $1.585 million, an increase of 6.89% over the same period in the previous year.

The group’s gross profit rose by 8.89% to $102.6 million, while net profit soared by 45.84% to $203 million. In the first nine months of the year, the company recorded a growth of 4.07%, to $5.287 billion. Gross profit rose by 7.44% and net profit by 6.64%.