Coach 2011 Annual Report Download - page 5

TABLE OF CONTENTS
In this Form 10-K, references to “Coach,” “we,” “our,” “us” and the “Company” refer to Coach, Inc., including consolidated
subsidiaries. The fiscal years ended June 30, 2012 (“fiscal 2012”), and July 2, 2011 (“fiscal 2011”) were each 52-week periods. The
fiscal year ended July 3, 2010 (“fiscal 2010”) was a 53-week period. The fiscal year ending June 29, 2013 (“fiscal 2013”) will be a
52-week period.
PART I
ITEM 1. BUSINESS
GENERAL DEVELOPMENT OF BUSINESS
Founded in 1941, Coach was acquired by Sara Lee Corporation (“Sara Lee”) in 1985. In June 2000, Coach was incorporated in the
state of Maryland. In October 2000, Coach was listed on the New York Stock Exchange and sold approximately 68 million shares of
common stock, split adjusted, representing 19.5% of the outstanding shares. In April 2001, Sara Lee completed a distribution of its
remaining ownership in Coach via an exchange offer, which allowed Sara Lee stockholders to tender Sara Lee common stock for Coach
common stock.
In June 2001, Coach Japan was formed to expand our presence in the Japanese market and to exercise greater control over our brand in
that country. Coach Japan was initially formed as a joint venture with Sumitomo Corporation. On July 1, 2005, we purchased Sumitomo’s
50% interest in Coach Japan, resulting in Coach Japan becoming a 100% owned subsidiary of Coach, Inc.
In fiscal 2009, the Company acquired the Coach domestic retail businesses in Hong Kong, Macau and mainland China (“Coach
China”) from its former distributor, the ImagineX group. These acquisitions provide the Company with greater control over the brand in
China, enabling Coach to raise brand awareness and aggressively grow market share with the Chinese consumer.
In fiscal 2011, the Company acquired a non-controlling interest in a joint venture with Hackett Limited to expand the Coach
International business in Europe. Through the joint venture, the Company opened retail locations in Spain, Portugal and Great Britain in
fiscal 2011 and in France and Ireland in fiscal 2012. The Company currently anticipates further European expansion in fiscal 2013.
In fiscal 2012, the Company acquired the Coach domestic retail businesses in Singapore and Taiwan, which were operated by Valiram
Group and Tasa Meng, respectively. In connection with the fiscal 2011 agreement with the Valiram Group, the Company assumed direct
control of its domestic retail business in Malaysia in July 2012. Additionally, in connection with the fiscal 2012 agreement with Shinsegae
International, the Company assumed direct control of its retail business in Korea in early August 2012.
FINANCIAL INFORMATION ABOUT SEGMENTS
See the Segment Information note presented in the Notes to the Consolidated Financial Statements.
NARRATIVE DESCRIPTION OF BUSINESS
Coach has grown from a family-run workshop in a Manhattan loft to a leading American marketer of fine accessories and gifts for
women and men. Coach is one of the most recognized fine accessories brands in the U.S. and in targeted international markets. We offer
premium lifestyle accessories to a loyal and growing customer base and provide consumers with fresh, relevant and innovative products
that are extremely well made, at an attractive price. Coach’s modern, fashionable handbags and accessories use a broad range of high
quality leathers, fabrics and materials. In response to our customer’s demands for both fashion and function, Coach offers updated styles
and multiple product categories which address an increasing share of our customer’s accessory wardrobe. Coach has created a
sophisticated, modern and inviting environment to showcase our product assortment and reinforce a consistent brand position wherever the
consumer may shop. We utilize a flexible, cost-effective global sourcing model, in which independent manufacturers supply our products,
allowing us to bring our broad range of products to market rapidly and efficiently.
Coach offers a number of key differentiating elements that set it apart from the competition, including:
A Distinctive Brand — Coach offers distinctive, easily recognizable, accessible luxury products that are relevant, extremely well
made and provide excellent value.
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