Coach 2009 Annual Report Download - page 6

TABLE OF CONTENTS
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 channel provides us with immediate, controlled access to
consumers through Coach-operated stores in North America, Japan, Hong Kong, Macau and mainland China and the Internet. 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, business cases, jewelry, wearables, sunwear,
travel bags, fragrance and watches. The following table shows the percent of net sales that each product category represented:
Fiscal Year Ended
July 3,
2010
June 27,
2009
June 28,
2008
Handbags 63% 62% 62%
Accessories 28 29 29
All other products 9 9 9
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 2010, we introduced Poppy which offers a variety of fresh silhouettes with a youthful
appeal, vibrant colors and accessible price points, targeting both new and existing customers. We also introduced additional lifestyle
collections, of which the Kristin collection was the most notable.
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
rings 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, coach.com and over 950 U.S. department stores. Footwear sales are comprised primarily of women’s styles, which
coordinate with Coach’s handbag collections.
Business Cases — This assortment is primarily men’s and includes computer bags, messenger-style bags and totes.
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.
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 accessories with the latest fashion directions in sunglasses. Coach
sunglasses are sold in Coach retail stores and coach.com, department stores, select sunglass retailers and optical retailers in major markets.
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