CNBC Marathon looks at how Gen Z is reinvigorating legacy brands and influencing change in fashion and beauty retail.
After a severe slump in the 2010s, Coach engineered a comeback by winning over Gen Z. In 2024, Coach surpassed Michael Kors to capture 2nd place in the U.S. luxury handbag market, according to Bernstein. In its third fiscal quarter of 2025, more than two-thirds of the brand’s nearly 900,000 new customers in North America were Gen Z and millennials. And, its success has boosted its parent company, Tapestry.
Defining fashion for decades, Gap reached nearly 3,000 stores worldwide by 2001. But, in the decades that followed, the apparel retailer lost its brand identity, experienced declining sales and closed hundreds of stores. Now, revitalized marketing efforts from CEO Richard Dickson, and new creative direction from fashion designer Zac Posen, has brought the brand back into the cultural relevance.
Affordable cosmetics company e.l.f. Beauty posted its first billion-dollar fiscal year in 2024 and announced its blockbuster acquisition of Hailey Bieber’s Rhode in a $1 billion deal within a year. The deal will bring the company into more premium channels after being in drugstores, Target, Walmart, Dollar General and Ulta. But, Wall Street has been weary as of late with shares dropping more than 10% the day after posting its first-quarter fiscal 2026 earnings results. The company posted a 30% drop in profits during the quarter.
Coach, Gap and e.l.f. Beauty are among the companies benefiting from Gen Z’s influence and Wall Street is watching. This CNBC Marathon delves into how Coach is winning over younger shoppers, the details of Gap’s comeback strategy and how e.l.f. Beauty has cornered the dupes marketplace.
Chapters:
00:00 Introduction
01:25 Why Gen Z Fell In Love With Coach
10:45 How Gap Is Making A Comeback
20:45 Is The $1B Hailey Bieber Deal Enough To Keep E.l.f. Beauty Relevant?
Produced and Shot by: Natalie Rice, Ryan Baker
Edited by: Evan Lee Miller, Darren Geeter, Nic Golden Henry
Animation: Jason Reginato, Emily Park, Mallory Brangan
Additional Camera by: Katie Tarasov, Lisa Setyon
Editorial Support by: Kae Park
Senior Managing Producer: Tala Hadavi
Senior Director of Video: Jeniece Pettitt
Additional footage: Getty Images, AP Photo, Coach, Gap Inc., e.l.f. Beauty, Reuters
Additional sources: PitchBook, NielsenIQ
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Watch CNBC on the go with CNBC+: https://www.cnbc.com/WatchCNBCPlus
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to level up your AI skills? Sign up for Smarter by CNBC Make It’s new online course, How To Use AI To Communicate Better At Work. Get specific prompts to optimize emails, memos and presentations for tone, context and audience. Sign up today: https://cnb.cx/47ELu8O
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC
#CNBC
How Gen Z Is Reviving Legacy Brands
source
