Chipotle and Cava blame weaker sales on younger customers cutting back and bringing packed lunches. Despite this, Gen Z shoppers are still buying Coach handbags. Tapestry, Coach’s parent company, beat Wall Street’s expectations, with double-digit sales growth in North America driven by attracting new Gen Z customers. Tapestry’s net income rose to $274.8 million in the first quarter.

Tapestry CEO Joanne Crevoiserat stated that the company acquired over 2.2 million new customers globally in the first quarter, with Gen Z accounting for about 35% of new customers. The company raised its full-year outlook, expecting $7.3 billion in revenue and earnings per share between $5.45 and $5.60. Despite this, Tapestry’s shares dropped about 9% in premarket trading.

Cava saw demand among 25- to 34-year-old consumers decline due to factors like higher unemployment rates and student loan repayments. Chipotle’s CEO noted fewer visits from younger diners, particularly those aged 25 to 35. Holiday forecasts predict reduced spending by Gen Z, with PwC reporting plans to spend 23% less on average compared to the previous year.

Deloitte also found that Gen Z consumers plan to spend 34% less this holiday season, with millennials expecting to spend 13% less. Despite the challenges faced by some companies with younger customers, Tapestry has been successful in attracting and retaining Gen Z shoppers, reflecting a different trend in the market.

Read more at CNBC: Tapestry (TPR) Q1 2026 earnings