Coach 2007 Annual Report Download - page 5

The Direct-to-Consumer segment consists of channels that provide us with immediate, controlled access to consumers: retail stores and
factory stores in North America and Japan, the Internet and the Coach catalog. This segment represented approximately 80% of Coach's total
net sales in fiscal 2008, with North American stores, Coach Japan and the Internet contributing approximately 59%, 19% and 2% of total
net sales, respectively.
North American Retail Stores — Coach stores are located in regional shopping centers and metropolitan areas throughout the U.S.
and Canada. The retail stores carry an assortment of products depending on their size and location. Our flagship stores, which offer the
broadest assortment of Coach products, are located in high-visibility locations such as New York, Chicago, San Francisco and Toronto.
Our stores are sophisticated, sleek, modern and inviting. They showcase the world of Coach and enhance the shopping experience while
reinforcing the image of the Coach brand. The modern store design creates a distinctive environment to display our products. Store
associates are trained to maintain high standards of visual presentation, merchandising and customer service. The result is a complete
statement of the Coach modern American style at the retail level.
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The following table shows the number of Coach retail stores and their total and average square footage:
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Retail stores 297 259 218
Net increase vs. prior year 38 41 25
Percentage increase vs. prior year 14.7% 18.8% 13.0%
Retail square footage 795,226 672,737 562,553
Net increase vs. prior year 122,489 110,184 71,628
Percentage increase vs. prior year 18.2% 19.6% 14.6%
Average square footage 2,678 2,597 2,581
North American Factory Stores — Coach's factory stores serve as an efficient means to sell manufactured-for-factory-store product,
including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach
Factory name and are geographically positioned primarily in established outlet centers that are generally more than 50 miles from major
markets.
Coach’s factory store design, visual presentations and customer service levels support and reinforce the brand's image. Through these
factory stores, Coach targets value-oriented customers who would not otherwise buy the Coach brand. Prices are generally discounted from
10% to 50% below full retail prices.
The following table shows the number of Coach factory stores and their total and average square footage:
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Factory stores 102 93 86
Net increase vs. prior year 9 7 4
Percentage increase vs. prior year 9.7% 8.1% 4.9%
Factory square footage 413,389 321,372 281,787
Net increase vs. prior year 92,017 39,585 29,508
Percentage increase vs. prior year 28.6% 14.0% 11.7%
Average square footage 4,053 3,456 3,277
Coach Japan, Inc. — Coach Japan operates department store shop-in-shop locations as well as freestanding flagship, retail and
factory stores. Flagship stores, which offer the broadest assortment of Coach products, are located in select shopping districts throughout
Japan.
The following table shows the number of Coach Japan locations and their total and average square footage:
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Coach Japan locations 149 137 118
Net increase vs. prior year 12 19 15
Percentage increase vs. prior year 8.8% 16.1% 14.6%
Coach Japan square footage 259,993 229,862 194,375
Net increase vs. prior year 30,131 35,487 32,743
Percentage increase vs. prior year 13.1% 18.3% 20.3%
Average square footage 1,745 1,678 1,647
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