Gap is entering the accessories market with a new handbag line designed by Reed Krakoff, the former Coach executive. The collection features bags made from Gap's signature fleece and denim, including the Five-Pocket Tote and Hoodie Tote. Priced from $29.95 to $148, with a limited edition patchwork style at $498, the bags launch Sept. 8. CEO Richard Dickson aims to boost the brand's relevance and margins. The move follows a broader revival under Dickson, who also appointed Zac Posen as creative director. Gap's sales rose 10% in the last quarter, outpacing other brands. The company is expanding into beauty and entertainment under new leadership.

The brand has tapped a former Coach designer to create a new line of handbags using its signature fleece and denim. They will soon be in a store near you. The move is an attempt by Gap to become a bigger player in the roughly $15 billion accessories category and comes as the brand is undergoing a broad revival. “Accessories are not a new business for Gap, but we’ve never been in it with distinction or conviction,” Richard Dickson, the chief executive of Gap Inc., which also owns Old Navy, Banana Republic and Athleta, said in an interview. Dickson is looking to change that with the addition of Reed Krakoff, who was named executive director of accessories for the parent company last year. In addition to Coach, Krakoff has designed for Tiffany & Co. and under his own label. The hope is that Krakoff will do for handbags what fashion designer Zac Posen—whom Dickson tapped in 2024 as Gap Inc.’s creative director and the designer for Gap Studio, a high-end, in-house brand—did for apparel: Make it buzzworthy. Dickson said a more robust accessories offering will make the Gap brand more relevant, improve margins, attract new customers and encourage existing customers to shop more frequently. For inspiration, Krakoff drew on Gap’s heritage, including its five-pocket jeans and hoodies. The Five-Pocket Tote has classic denim details such as belt loops, shank buttons and bar tack stitching. The Hoodie Tote is made from fleece with Gap’s logo emblazoned across the front and a drawstring closure. The new bags are priced from $29.95 to $148 with one exception—a limited edition patchwork style for $498. The bags will be available in stores and online beginning Sept. 8.Making bags from denim and fleece has its share of challenges. Krakoff said he went through a lot of prototypes before he hit on the right construction. The denim he used at first had too much stretch and didn’t hold its shape. Gap created a special no-stretch denim more suited for carrying things. It is similar to the old-school, stiffer denim that was long used in jeans before denim makers started adding stretchier fabrics. For the Hoodie Tote, Krakoff lined it with neoprene to make it sturdier. “You can wash it,” he said. “It’s the ultimate everyday bag.”Under Dickson, a former Mattel executive who spearheaded Barbie’s revival before becoming Gap Inc.’s CEO in August 2023, the Gap brand has undergone a renaissance. It has collaborated on collections with celebrities such as Victoria Beckham and Hailey Bieber. And Posen’s creations have shown up on red carpets such as the Met Gala and the Oscars. The Gap brand’s sales rose 10% for the quarter that ended Aug. 1, extending a string of gains and far outpacing the company’s other brands. It helped drive the biggest jump in the company’s stock price in more than a year. As sales of Gap’s core apparel offerings have improved, the brand is now adding what Dickson calls “accelerators”—new businesses that will drive more growth. It’s a model Dickson is applying across all of the company’s brands. Dickson tapped former Estée Lauder executive John Demsey last year to consult as executive director of beauty. Gap relaunched a fragrance collection this year. And Old Navy also rolled out beauty products. In January, Dickson announced the appointment of former Paramount executive Pam Kaufman for the newly created role of chief entertainment officer to build the company’s entertainment, content and licensing. Write to Suzanne Kapner at [email protected]