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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 28, 2014 (“fiscal 2014”), June 29, 2013 (“fiscal 2013”) and June 30, 2012 (“fiscal 2012”) were each 52-week periods. The fiscal year ending
June 27, 2015 (“fiscal 2015”) will be also be a 52-week period.
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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 then 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.
Coach’s international expansion strategy is to enter into joint ventures and distributor relationships to build market presence and capability. To further
accelerate brand awareness, aggressively grow market share and to exercise greater control of our brand, Coach has historically acquired its partner’s interests.
• In June 2001, 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.
• In fiscal 2011, the Company purchased a non-controlling interest in a joint venture with Hackett Limited to expand the Coach business in Europe.
Through the joint venture, the Company opened retail locations in Spain, Portugal and the United Kingdom in fiscal 2011, in France and Ireland in
fiscal 2012 and in Germany in fiscal 2013. In the beginning of fiscal 2014, the Company purchased Hackett Limited’s 50% interest in the joint
venture.
• Coach acquired the domestic retail businesses from its distributors as follows:
nFiscal 2009: Hong Kong, Macau and mainland China (“Coach China”).
nFiscal 2012: Singapore and Taiwan.
nFiscal 2013: Malaysia and South Korea.
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See Note 16, "Segment Information" for more information.
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Coach has grown from a family-run workshop in a Manhattan loft to a leading New York design house of modern luxury accessories and lifestyle
collections. 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 engaged customer base and provide consumers with fresh, compelling and innovative products that are extremely well made, at an
attractive price. Coach’s product offering uses 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 created a sophisticated, modern and inviting environment to showcase our product assortment and reinforce a consistent brand positioning 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 — The Coach brand represents a blend of classic American style with a distinctive New York spirit, offering a design that is
known for a distinctive combination of style and function. Coach offers lifestyle products that are relevant, extremely well made and provide
excellent value.
A Market Leadership Position With Growing International Recognition — Coach is a global leader in premium handbags and lifestyle accessories.
Our long-standing reputation and distinctive image have been consistently developed across an expanding number of products, sales channels and
international markets, including within North America, in which Coach is the leading brand, and in Japan, where Coach is the leading imported
luxury handbag and accessories brand by units sold. Coach is also gaining traction in China and other Asian markets, Europe and Latin America.
A Loyal And Involved Consumer — Coach consumers have a strong emotional connection with the brand. Part of the Company’s everyday mission is
to cultivate consumer relationships by strengthening this emotional connection.
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