Coach 2008 Annual Report Download - page 6

TABLE OF CONTENTS
channel provides us with immediate, controlled access to consumers through Coach-operated stores in North America, Japan, Hong
Kong, Macau and mainland China, the Internet and the Coach catalog. The Indirect channel provides us with access to consumers via
wholesale department store and specialty store locations in over 20 countries.
Coach Is Innovative And Consumer-Centric — Coach listens to its consumer through rigorous consumer research and strong
consumer orientation. Coach works to anticipate the consumer’s changing needs by keeping the product assortment fresh and relevant.
We believe that these differentiating elements have enabled the Company to offer a unique proposition to the marketplace. We hold the
number one position within the U.S. premium handbag and accessories market and the number two position within the Japanese imported
luxury handbag and accessories market.
Products
Coach’s product offerings include handbags, women’s and men’s accessories, footwear, jewelry, wearables, business cases, sunwear,
travel bags, fragrance and watches. The following table shows the percent of net sales that each product category represented:
Fiscal Year Ended
June 27,
2009
June 28,
2008
June 30,
2007
Handbags 62% 62% 64%
Accessories 29 29 28
All other products 9 9 8
Total 100% 100% 100%
Handbags — Handbag collections feature classically inspired designs as well as fashion designs. Typically, there are three to four
collections per quarter and four to seven styles per collection. These collections are designed to meet the fashion and functional requirements
of our broad and diverse consumer base. In fiscal 2009, we introduced additional lifestyle collections, of which the Madison collection was
the most notable. We also launched a new design, Coach Op Art, which provides us with an entirely new logo platform for the brand. In
fiscal 2010, we will introduce additional lifestyle collections and update existing collections. The most notable collection, Poppy, was
introduced in July 2009 and offers a variety of fresh silhouettes with a youthful appeal, vibrant colors and accessible price points, targeting
both new and existing customers.
Accessories — Accessories include women’s and men’s small leather goods, novelty accessories and women’s and men’s belts.
Women’s small leather goods, which coordinate with our handbags, include money pieces, wristlets, and cosmetic cases. Men’s small
leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key fobs
and charms are also included in this category.
Footwear — Jimlar Corporation (“Jimlar”) has been Coach’s footwear licensee since 1999. Footwear is distributed through select
Coach retail stores and over 850 U.S. department stores. Footwear sales are comprised primarily of women’s styles, which coordinate with
Coach’s handbag collections.
Jewelry — This category is comprised of bangle bracelets, necklaces, rings and earrings offered in both sterling silver and non-
precious metals.
Wearables — This category is comprised of jackets, sweaters, gloves, hats and scarves, including both cold weather and fashion. The
assortment is primarily women’s and contains a fashion assortment in all components of this category.
Business Cases — This assortment is primarily men’s and includes computer bags, messenger-style bags and totes.
Sunwear — Marchon Eyewear, Inc. (“Marchon”) has been Coach’s eyewear licensee since 2003. This collection is a collaborative effort
from Marchon and Coach that combines the Coach aesthetic for fashion
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