Tapestry Bumps Stake In Eco-Leather Producer Gen Phoenix To 10%

Tapestry (TPR) is quadrupling its stake in eco-leather producer Gen Phoenix to 9.9% as part of a $15 million financing round, according to a Reuters report on Tuesday.

The move will enable Tapestry, which owns the luxury handbag brands Coach, accessories label Kate Spade New York, and boots and stilettos brand Stuart Weitzman, to use more sustainable leather materials and practices for its products.

Sustainable fashion, which refers to the use of eco-friendly materials in apparel and footwear, is rapidly gaining popularity and is seeing rising demand, particularly among younger consumers who are increasingly favoring greener alternatives.

Venture capital firm Material Impact led the $15 million financing round for Gen Phoenix.

Tapestry and Gen Phoenix first partnered in 2022 with the launch of Coach's Gen-Z-oriented Coachtopia line, according to the Reuters report. The Coachtopia bags are designed with at least 50% recycled leather fibers from waste supplied by Gen Phoenix.

The development comes at a period of strength for the American fashion and accessories company.

Tapestry is high on investors' radars after it raised its full-year forecast in May, and analysts say its Coach brand is experiencing strong demand.

On Stocktwits, the retail sentiment for the company held in the 'bullish' zone, unchanged from the start of the year.

Shares of Tapestry have climbed about 68% since a recent low in April and currently trade at a lifetime high of $101.60. Overall, the stock has risen 55.5% year-to-date.

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