Coach 2008 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 27, 2009 (“fiscal 2009”), June 28, 2008 (“fiscal 2008”) and June 30, 2007 (“fiscal
2007”) were each 52-week periods. The fiscal year ending July 3, 2010 (“fiscal 2010”) will be a 53-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.
Financial Information about Segments
Segment information is presented in Note 14 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.
A Market Leadership Position With Growing Share — Coach is America’s leading premium handbag and accessories brand and
each year, as our market share increases, our leadership position strengthens. In Japan, Coach is the leading imported luxury handbag
and accessories brand by units sold.
Coach’s Loyal And Involved Consumer — Coach consumers have a specific emotional connection with the brand. Part of the
Company’s everyday mission is to cultivate consumer relationships by strengthening this emotional connection.
Multi-Channel International Distribution — This allows Coach to maintain a critical balance as results do not depend solely on the
performance of a single channel or geographic area. The Direct-to-Consumer
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