Coach 2014 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2014 Coach annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

TABLE OF CONTENTS



Coach's product offerings include modern luxury accessories and lifestyle collections, including women's and men's bags, women’s and men’s small
leather goods, business cases, footwear, wearables including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel
bags and other lifestyle products. The following table shows net sales for each product category represented:




June 29,
2013
% of Total
June 30,
2012
% of Total
Women's Handbags  

$ 2,923,124
58%
$ 2,886,270
61%
Women's Accessories
1,195,622
23
1,169,858
24
Men's 
599,531
12
423,524
9
All Other Products
357,113
7
283,528
6
Total Sales  

$ 5,075,390
100%
$ 4,763,180
100%
The following is a summary of the all costs not allocated in the determination of segment operating income performance:




June 29,
2013
June 30,
2012
Inventory-related costs(1)  
$ 64,712
$ 35,262
Advertising, marketing and design 
(236,713)
(217,167)
Administration and information systems(2) 
(292,985)
(272,556)
Distribution and customer service 
(82,714)
(65,755)
Total corporate unallocated  
$ (547,700)
$ (520,216)
(1) Inventory-related costs consist of production variances and transformation-related costs. In fiscal 2014, 2013 and 2012 production variances were $54,317,
$69,512 and $35,262, respectively. In fiscal 2014 and fiscal 2013, transformation and other-related costs were ($82,192) and ($4,800), respectively.
There were no transformation and/or other-related charges in fiscal 2012.
(2) Includes ($49,315) in fiscal 2014 and ($48,402) in fiscal 2013 related to transformation and other-related charges and ($39,209) related to charitable
contributions in fiscal 2012.

As of June 28, 2014, Coach operated 303 retail stores and 199 outlet stores in the United States, 29 retail stores and eight outlet stores in Canada, 198
concession shop-in-shops within department stores, retail stores and outlet stores in Japan, 250 concession shop-in-shops within department stores, retail
stores and outlet stores in Hong Kong, Macau, mainland China, Singapore, Taiwan, Malaysia and South Korea, and 27 concession shop-in-shops within
department stores, retail stores and outlet stores in Europe. Coach also operates distribution, product development and quality control locations in the United
States, Hong Kong, China, South Korea, Vietnam, Philippines and India. Geographic revenue information is based on the location of our customer.
Geographic long-lived asset information is based on the physical location of the assets at the end of each fiscal year and includes property and equipment,
net and other assets.
82