Coach 2002 Annual Report Download - page 8

Table of Contents
In addition, Coach’s marketing communication efforts, including advertising, catalog mailings and outbound e-mails, are timed to reach
consumers before important holidays throughout the year.
Capitalize on Growing Interest in e-Commerce. In October 1999 Coach launched its on-line store. Coach’s website meets growing
consumer demand for the flexibility and convenience of shopping over the Internet by offering a selective array of its products. Coach views
its website, like its catalogs, as a key communications vehicle for the brand that also promotes store traffic.
Coach’s Products
Handbags. Coach’s original business was the design, manufacture and distribution of fine handbags, which accounted for
approximately 56% of its net sales in fiscal 2003. Coach makes quarterly offerings of its handbag collections, featuring classically inspired
designs as well as fashion trend designs. Typically, there are three to four collections per quarter and four to seven styles per collection,
depending on the concept and opportunity.
Accessories. Women’s accessories, consisting of wallets, cosmetic cases, wristlets, key fobs and belts, represented approximately
15% of Coach’s net sales in fiscal 2003. Coach recently completed a comprehensive updating in the design of the small leather goods
collections to coordinate them with its popular handbag collections. Men’s accessories, consisting of belts, leather gift boxes and other small
leather goods, represented approximately 3% of Coach’s net sales in fiscal 2003.
Business Cases. Business cases represented approximately 5% of Coach’s net sales in fiscal 2003. We recently expanded this
category to include nylon cases and computer bags.
Outerwear, Gloves, Hats and Scarves. Primarily a cold weather category, the assortment is approximately 70% women’s and
contains a fashion assortment in all three components of this category. In total, this category represented approximately 5% of Coach’s net
sales in fiscal 2003.
Weekend and Travel Accessories. The Coach weekend collection is comprised of cabin bags, duffels, suitcases, garment bags and a
comprehensive collection of travel accessories. Weekend and travel accessories represented approximately 3% of Coach’s net sales in fiscal
2003.
Personal Planning Products. A complement to Coach’s business cases and handbag collections, its personal planning assortment
includes folios, planners and desk agendas in a variety of leathers and fabrics. The category represented approximately 2% of Coach’s net
sales in fiscal 2003.
Watches. Movado Group, Inc. (“Movado”) has been Coach’s watch licensee since 1998 and has developed a distinctive collection of
watches inspired by both the women’s and men’s collections. These watches are manufactured in Switzerland and are branded with the
Coach name and logo.
Footwear. Jimlar Corporation (“Jimlar”) has been Coach’s footwear licensee since 1999. The footwear is developed and manufactured
primarily in Italy and is distributed through more than 600 locations in the U.S., including a majority of Coach retail stores and U.S.
department stores. Approximately 90% of the business is in women’s footwear, which coordinates with Coach handbags and employs fine
materials, including calf and suede.
Furniture and Home Furnishings. The Coach for Baker furniture collection was launched in the Spring of 1999 with Baker Knapp &
Tubbs, Inc. (“Baker”) as the licensee. The furniture collection is comprised of classic styles of sofas, chairs and benches that are given a
modern interpretation through crisp tailoring, straightforward lines and chic details. The collection is sold through Baker showrooms and
select dealers across the U.S.
Office/ Home Office. Coach office furniture launched in the Fall of 2001 with Steelcase Inc. (“Steelcase”) as the licensee. Steelcase and
Coach offer consumers high-end furniture products to outfit the home office and executive workplace.
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