Coach 2006 Annual Report Download - page 15

have been derived from Coach’s audited Consolidated Financial Statements. The financial data should be read in conjunction with Item 7,
“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Consolidated Financial Statements and
Notes thereto and other financial data included elsewhere herein.
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
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Net sales $2,612,456 $ 2,035,085 $ 1,651,704 $ 1,272,300 $ 926,406
Gross profit 2,022,986 1,581,567 1,267,551 955,019 659,197
Selling, general and administrative expenses 1,029,589 866,860 731,891 578,820 454,491
Operating income 993,397 714,707 535,660 376,199 204,706
Interest income, net 41,273 32,623 15,760 3,192 1,059
Income from continuing operations 636,529 463,840 336,647 220,239 122,383
Income from continuing operations:
Per basic share $ 1.72 $ 1.22 $ 0.89 $ 0.59 $ 0.34
Per diluted share 1.69 1.19 0.86 0.57 0.33
Weighted average basic shares outstanding 369,661 379,635 378,670 372,120 359,116
Weighted average diluted shares outstanding 377,356 388,495 390,191 385,558 371,684
 
Gross margin 77.4% 77.7% 76.7% 75.1% 71.2%
Selling, general and administrative expenses 39.4% 42.6% 44.3% 45.5% 49.1%
Operating income 38.0% 35.1% 32.4% 29.6% 22.1%
Income from continuing operations 24.4% 22.8% 20.4% 17.3% 13.2%

Working capital $ 1,332,200 $ 632,658 $ 443,699 $ 533,280 $ 295,333
Total assets 2,449,512 1,626,520 1,370,157 1,060,279 640,871
Cash, cash equivalents and investments 1,185,816 537,565 505,116 564,443 229,176
Inventory 291,192 233,494 184,419 161,913 143,807
Revolving credit facility — — 12,292 1,699 26,471
Long-term debt 2,865 3,100 3,270 3,420 3,535
Stockholders' equity 1,910,354 1,188,734 1,055,920 796,036 436,536
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Total stores open at fiscal year-end:
North American retail stores 259 218 193 174 156
North American factory stores 93 86 82 76 76
Coach Japan locations 137 118 103 100 93
Total store square footage at fiscal year-end:
North American retail stores 672,737 562,553 490,925 431,617 363,310
North American factory stores 321,372 281,787 252,279 231,355 232,898
Coach Japan locations 229,862 194,375 161,632 119,291 102,242
Average store square footage at fiscal year-end:
North American retail stores 2,597 2,581 2,544 2,481 2,329
North American factory stores 3,456 3,277 3,077 3,044 3,064
Coach Japan locations 1,678 1,647 1,569 1,193 1,099
(1) Coach’s fiscal year ends on the Saturday closest to June 30. Fiscal years 2007, 2006, 2005 and 2003 were 52-week years, while fiscal
year 2004 was a 53-week year.
(2) During fiscal 2007, the Company exited its corporate accounts business. See Note 3 to the Consolidated Financial Statements for further
information.
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
The following discussion of Coach’s financial condition and results of operations should be read together with Coach’s financial
statements and notes to those statements included elsewhere in this document.

Coach is a leading American marketer of fine accessories and gifts for men and women. Our product offerings include handbags,
women’s and men’s accessories, footwear, outerwear, business cases, sunwear, watches, travel bags, jewelry and fragrance. Coach operates
in two segments: Direct-to-Consumer and Indirect. The Direct-to-Consumer segment includes sales to consumers through Company-operated