Todd Kahn

I can't tell you the number of times I've heard somebody say, my first bag was a coach bag.

My memory was a gift, self-purchase, something that inspired me.

When we can create that kind of goodwill, I think we have them forever.

a long period.

But what I said to our investors, you don't have to believe that retention is higher than in the past.

If I keep the retention rates that I have historically had, but I'm bringing in so many new customers, your overall TAM, your overall market

penetration goes substantially up.

We are very disciplined.

One of the things we did six years ago is we cut the number of SKUs by 40%.

You know, I often say a good bag is a good bag everywhere.

One of the things we did, and we learned from traditional European luxury, we were killing off some of our best bags too early.

And I'll give you the classic example.

Tabby, one of our number one bags, I think it's all over the room, that bag was starting to slow down in the winter of 20.

What typically would have happened is we would have exited it, gone through a markdown cycle.

A year later, magically a bag that looked very similar, maybe called Gabby, would start the cycle over again.

Instead, we focused on animating that bag with, first it was pillow tabby, different materials.

enhance the franchise.

Today, again, it's still less than 10% of our total business, but it's a massive driver of new customers.

It's New York.

I'm surprised it took this long.