Coach 2011 Annual Report Download - page 31

TABLE OF CONTENTS
new technologies such as our global web presence, with 22 marketing websites in 23 countries, e-commerce enabled in the United
States, Canada and Japan, and social networking and blogs as cost-effective consumer communication opportunities to increase
online and store sales.
We believe the growth strategies described above will allow us to deliver long-term superior returns on our investments and drive
increased cash flows from operating activities. However, the current macroeconomic environment, while stabilizing, has created a
challenging retail market in which consumers, notably in North America and Japan, are still cautious. The Company believes long-term
growth can still be achieved through a combination of expanded distribution, a focus on innovation to support productivity and disciplined
expense control. Our multi-channel distribution model is diversified and includes substantial international and factory businesses, which
reduces our reliance upon our full-price U.S. business. With an essentially debt-free balance sheet and significant cash position, we have a
business model that generates significant cash flow and we are in a position to invest in our brand while continuing to return capital to
shareholders through common stock repurchases and dividends.
FISCAL 2012
The key metrics of fiscal 2012 were:
•Earnings per diluted share rose 20.9% to $3.53.
•Net sales increased 14.5% to $4.76 billion.
•Direct-to-consumer sales rose 16.1% to $4.23 billion.
•Comparable sales in Coach’s North American stores increased 6.6%.
•In North America, Coach opened 9 net new retail stores and 26 new factory stores, including 16 Men’s, bringing the total number
of retail and factory stores to 354 and 169, respectively, at the end of fiscal 2012. We also expanded 10 factory stores in North
America.
•Coach China results continued to be strong with double-digit growth in comparable stores. Coach China opened 30 net new
locations, bringing the total number of locations at the end of fiscal 2012 to 96.
•Coach Japan opened 11 net new locations, bringing the total number of locations at the end of fiscal 2012 to 180. In addition, we
expanded three locations.
•The company acquired its domestic retail Coach businesses in Taiwan and Singapore. As the result of these acquisitions and
subsequent openings, the company operated 7 retail locations in Singapore and 27 in Taiwan as of the end of fiscal 2012. The
Company has assumed direct control of its domestic business in Malaysia in July 2012 and its domestic retail business in Korea in
August 2012.
•Coach’s Board increased the Company’s cash dividend by 33%, to an expected annual rate of $1.20 per share starting with the
dividend paid on July 2, 2012.
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