Full Description

Coach, Inc. (Coach), incorporated in June 2000, is a marketer of fine accessories and gifts for women and men. The Company offers lifestyle accessories. Coach’s handbags and accessories use a range of leathers, fabrics and materials. The Company’s product offerings include handbags, women’s and men’s accessories, footwear, jewelry, wearables, business cases, sunwear, travel bags, fragrance and watches. Coach operates in two business segments: Direct-to-Consumer and Indirect. The Direct-to-Consumer segment consists of channels that provide Coach with immediate, controlled access to consumers, including Coach-operated stores in North America, Japan, Hong Kong, Macau and mainland China, the Internet and the Coach catalog. This segment represented approximately 84% of Coach's total net sales, during the fiscal year ended June 27, 2009 (fiscal 2009), with North American stores, Coach Japan, Inc., the Internet and Coach domestic retail businesses in Hong Kong, Macau and mainland China (Coach China) contributing approximately 61%, 21%, 2% and 1% of total net sales, respectively. The Indirect segment represented approximately 16% of total net sales in fiscal 2009, with United States Wholesale and Coach International representing approximately 10% and 5% of total net sales, respectively. During the fiscal 2009, the Company acquired the Coach China from the ImagineX group.

Direct-to-Consumer Segment

Coach stores are located in regional shopping centers and metropolitan areas throughout the United States and Canada. The retail stores carry an assortment of products depending on their size and location. Its principal stores, which offer a range of Coach products, are located in locations, such as New York, Chicago, San Francisco and Toronto. Coach's factory stores serve as a means to sell manufactured-for-factory-store product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. Coach Japan operates department store shop-in-shop locations, as well as retail and factory stores. Principal stores, which offer a range of assortment of Coach products, are located in select shopping districts throughout Japan. Coach China operates department store shop-in-shop locations, as well as retail and factory stores. Stores, which offer an assortment of Coach products, are located in select shopping districts throughout Hong Kong and mainland China. During fiscal 2009, the Company relaunched the coach.com Website.

Indirect Segment

United States Wholesale channel offers access to Coach products to consumers who prefer shopping at department stores. Coach products are also available on macys.com, dillards.com and nordstrom.com. Coach's products are sold in approximately 930 wholesale locations in the United States and Canada. Coach International channel represents sales to international wholesale distributors and authorized retailers. Coach’s network of international distributors serves the markets, including Korea, Taiwan, United States and territories (primarily Hawaii and Guam), Mexico, Saudi Arabia, Singapore, Thailand, Greece, Japan, Malaysia, United Arab Emirates, Australia, Hong Kong, Indonesia, Russia, Bahamas, Bahrain, France, India, Macau, New Zealand, St. Thomas, United Kingdom and Vietnam. Coach’s international wholesale customers are the DFS Group, Lotte Group, Shinsegae International, Shilla Group and Tasa Meng Corp.

Handbag collections feature designs, as well as fashion designs. Typically, there are 3 to 4 collections per quarter and 4 to 7 styles per collection. During fiscal 2009, the Company introduced additional lifestyle collections, including Madison collection. It also launched a design, Coach Op Art. Accessories include women’s and men’s small leather goods, novelty accessories and women’s and men’s belts. Women’s small leather goods, which coordinate with its handbags, include money pieces, wristlets, and cosmetic cases. Men’s small leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key fobs and charms are also included in this category. Jimlar Corporation (Jimlar) has been Coach's footwear licensee since 1999. Footwear is distributed through over 850 locations in the United States department stores. Footwear sales are comprised primarily of women’s styles, which coordinate with Coach’s handbag collections.

Jewelry is comprised of bangle bracelets, necklaces, rings and earrings offered in both sterling silver and non-precious metals. Wearables category is comprised of jackets, sweaters, gloves, hats and scarves, including both cold weather and fashion. Business Cases is includes computer bags, messenger-style bags and totes. Marchon Eyewear, Inc. (Marchon) has been Coach’s eyewear licensee since 2003. Travel Bags comprises luggage and related accessories, such as travel kits and valet trays. Coach, in partnership with Beauty Bank, a division of Estee Lauder, Inc. offers two fragrances. The collections include a perfume spray, purse spray, perfume solid, shimmer powder, body lotion and lip gloss. Movado Group, Inc. (Movado) has been Coach’s watch licensee and has developed a collection of watches inspired primarily by the women’s collections with select men’s styles.