Gap is entering the roughly $15 billion accessories market with a handbag collection designed by Reed Krakoff, the architect of Coach's transformation into a global accessories powerhouse, with prices running from $29.95 to $148 and a limited-edition patchwork style at $498. The collection, available in stores and online beginning Sept. 8, includes the Five-Pocket Tote and the Hoodie Tote, which is made from neoprene-lined fleece and can be washed. Gap CEO Richard Dickson said on the Q2 2026 earnings call that accessories represent an "accelerator" alongside beauty and entertainment licensing, and Krakoff, who was named executive director of accessories for Gap Inc. last year, has done "an absolutely terrific job" translating Gap's brand ethos into the collection. The move pressures Tapestry, whose Coach brand Krakoff helped build, as Coach accounts for the majority of Tapestry's revenue; Tapestry shares were indicated down about 1.9% ahead of Tuesday's NYSE open, extending a 17.6% slide over the prior 30 days.
The Gap, Inc.Gap enters accessories market with new handbag line, expanding product offerings and potential revenue.
Tapestry IncGap's entry into accessories pressures Tapestry's Coach brand, which dominates its revenue.
