Coach 2014 Annual Report Download - page 6

TABLE OF CONTENTS
Coach sunglasses are sold in Coach retail stores and our Internet sales sites, department stores worldwide, select sunglass retailers and optical retailers in
major global markets.
Watches — Movado Group, Inc. (“Movado”) has been Coach's watch licensee since 1998 and has developed a distinctive collection of watches
inspired primarily by women's collections with select men's styles. The Coach watch collection is currently sold in Coach retail stores and our Internet sales
sites, department stores worldwide, and select watch retailers in major global markets.
Fragrance — Starting in the spring of 2010, Estée Lauder Companies Inc. (“Estée Lauder”), through its subsidiary, Aramis Inc., became Coach's
fragrance licensee. Fragrance is distributed through Coach retail stores, our Internet sales sites, department and specialty stores worldwide, and select
perfumeries in major global markets. Coach offers women's fragrance collections which include eau de perfume spray, eau de toilette spray, purse spray, and
body lotion. Coach also offers men's fragrance collections.
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Coach's New York-based design team is responsible for conceptualizing and directing the design of all Coach products. Designers have access to Coach's
extensive archives of product designs created since the Company's inception, which are a valuable resource for new product concepts. Coach designers are
also supported by a strong merchandising team that analyzes sales, market trends and consumer preferences to identify market opportunities that help guide
each season's design process. Merchandisers also analyze, edit, add and discontinue products to maximize sales across all channels. The product category
teams, each comprised of design, merchandising/product development and sourcing specialists help Coach execute design concepts that are consistent with
the brand's strategic direction.
Coach's design and merchandising teams work in close collaboration with all of our licensing partners to ensure that the licensed products (watches,
footwear, eyewear and fragrance) are conceptualized and designed to address the intended market opportunity and convey the distinctive perspective and
lifestyle associated with the Coach brand.
In the first quarter of fiscal 2014, Stuart Vevers joined the Company as Executive Creative Director, replacing Reed Krakoff, who departed from the
Company in connection with the sale of the Reed Krakoff business.
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In fiscal 2014, the Company’s operations reflect five operating segments aggregated into two reportable segments:
• North America, which includes sales to North American consumers through Coach-operated stores (including the Internet) and sales to wholesale
customers. This segment represented approximately 65% of Coach's total net sales in fiscal 2014.
• International, which includes sales to consumers through Coach-operated stores (including the Internet) and concession shop-in-shops in Japan and
mainland China, Coach-operated stores and concession shop-in-shops in Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United
Kingdom, France, Ireland, Spain, Portugal, Germany and Italy, as well as sales to wholesale customers and distributors in approximately 35
countries. This segment represented approximately 34% of total net sales in fiscal 2014.
Other, which is not a reportable segment, consists of sales and expenses generated in ancillary channels, including licensing and disposition.
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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, location and customer preferences. Our flagship stores, which offer the broadest
assortment of Coach products, are located in high-visibility locations within New York City, Chicago, Beverly Hills, San Francisco, Toronto and Vancouver.
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