Former Coach CEO Claims US Manufacturing Can’t Match Overseas Value for Luxury Bags

Overseas Production Essential for Value, Says Former Coach Leader

According to recent reports, the former CEO of luxury brand Coach has stated that producing high-quality bags at competitive prices requires manufacturing outside the United States. Lew Frankfort, who served as Coach’s chief executive from 1985 to 2014, made these comments during a podcast interview with Yahoo Finance’s Opening Bid, sources indicate.

Overseas Production Essential for Value, Says Former Coach Leader
Global Supply Chains Trump Tariff Concerns
Coach’s Current Manufacturing Strategy
Industry Divided on Manufacturing Locations
Long-Term Global Outlook

Global Supply Chains Trump Tariff Concerns

When questioned about whether profitable US manufacturing was feasible amid current tariff policies, Frankfort reportedly acknowledged the possibility but emphasized that superior value could only be achieved through international production. “If you want to give consumers the best possible value, you really need to make most of your products outside the United States,” he stated during the interview, according to the transcript.

Analysts suggest his perspective carries significant weight given his decades-long tenure with the company. Frankfort joined Coach in 1979 and oversaw its transformation into a global luxury accessories brand during his 29-year leadership as CEO.

Coach’s Current Manufacturing Strategy

The report states that Coach, which began as a Manhattan leather goods shop in 1941, now manufactures most products in Asian countries. Parent company Tapestry reportedly produces the majority of its goods in Vietnam, Cambodia, and the Philippines, according to recent earnings call transcripts.

Despite tariff pressures, Tapestry’s financial performance remains strong, with Coach reportedly generating $1.43 billion in sales during its latest quarter—a 14% year-over-year increase. The parent company’s stock has reportedly risen approximately 158% over the past year, according to market analysis.

Industry Divided on Manufacturing Locations

While some companies are exploring US production options to mitigate tariff impacts, industry leaders appear divided on the strategy. French luxury conglomerate LVMH executives reportedly indicated during an April earnings call that they had capacity to increase Louis Vuitton production in the United States.

Similarly, Apple has pledged substantial investment in US manufacturing, committing $600 billion over the next four years, according to company announcements.

However, Kering—parent company of Gucci and Yves Saint Laurent—reportedly maintains that shifting production from Europe “makes no sense.” CEO François-Henri Pinault emphasized during a February earnings call that manufacturing in Italy and France remains integral to their brand heritage and consumer promise.

Long-Term Global Outlook

Frankfort suggested that current tariff policies represent a temporary challenge rather than a permanent shift. “I think the tariffs that are in place today, and threatened for tomorrow, is something that we’re going to live with through this administration,” he stated, adding that “over time we can only succeed as a global economy.”

The former executive’s comments come as luxury brands navigate complex supply chain decisions while maintaining quality standards and competitive pricing. Industry observers suggest that the debate over optimal manufacturing locations will likely continue as trade policies evolve.