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Coach Executive Summary

Coach is a company that started in 1941 and has since grown dramatically. Coach began only making leather goods and several years later started to make and sell a much broader range of products. Coach is not only sold in the United States but also internationally. Coach is traded on the New York Stock Exchange (NYSE) and owns a separate Japan company as well. Coach has also made significant improvements in the company’s financial status within the last decade, has formed The Coach Foundation, and has also been an avid donator of time and money to many charities worldwide within the last few years.

Coach started out as a company that was known for making quality and unique leather goods; the popular signature style and Coach emblem with the horse and carriage distinctively identifies the Coach brand. The company was founded in Manhattan in 1941. Six artisans began handcrafting leather goods in a Manhattan loft and quickly built a large customer base because of the quality and unique craftsmanship of the Coach products. In 1999 Coach launched its online store at www.coach.com (Coach Inc., 2011). After launching the Coach website the company has flourished even more and is a larger and more prominent business with more than 400 Coach Stores in the United States and Canada. Coach products are also available in more than 900 department stores in the United States, 182 international department stores, retail stores, and duty free shops located in more than 20 countries, 161 department store shop-in-shops, retail stores, and factory store locations owned and operated by Coach Japan, Incorporated (Coach Inc., 2011). With Coach is one of the most recognized accessory brands in the United States; they also strived to increase international distribution and gain an international customer base. They planned to do this by starting a company called Coach Japan Incorporated, which is fully owned and operated by Coach; this gives them complete control over the distribution in Japan. Even with Coach growing immensely the company’s corporate headquarters still remains in Manhattan on 34th Street, in the location of the former factory lofts where the company was started (Coach Inc., 2011). With Coach growing rapidly throughout the world there are many counterfeit products or replicas. However, Coach has a credo with a serial number on most leather goods the company makes; each product has a unique serial number stamped on the leather patch or credo as well as Coach stamped on most brass and nickel fixtures. Having the credo, serial number, only using high quality materials and the quality craftsmanship are what set Coach products apart from the competitors and poor quality replicas and counterfeits.

With Coach being a very lucrative business and committed to the company’s core values as well as being good citizens of the global community they started the Coach Foundation in 2008 (Coach Inc., 2011). The Coach Foundation's principle mission is to give back to the organizations that empower education and support women and children worldwide. The Breast Cancer Research Foundation is one of many the Coach Foundation sponsors, and they have donated proceeds of more than one million dollars. Coach also supports the organization Peace First (www.peacefirst.org); the organization provides hands on mentoring and education that make life long differences in children, schools, and families (Coach Inc., 2011). Coach has not donated only $300,000 to Peace First, but hundreds of Coach Employees have also volunteered and been active in the organization. The Coach Foundation has also been an avid donator and supporter of humanitarian aid for victims and relief efforts through the American Red Cross and Japanese Red Cross (Coach, 2011). The Coach Foundation also has two programs, The Coach Women’s Initiative and the Coach Education Initiative. The Coach Foundation also regularly funds employee recommended causes and many Coach Employees are active members and volunteers in the local community (Coach Inc., 2011).

Coach has expanded enormously after the company first began and is a marketer of not only leather goods but also fine accessories and gifts for both men and women. The product offerings include handbags, accessories for men and women, footwear, jewelry, sunglasses, travel bags, apparel, dog collars, and leashes. The company has two business segments for which they can sell the products directly and indirectly. During 2010, the company introduced Poppy, as an additional lifestyle collection for various products (Coach Inc., 2011).

Coach stock became publically traded on October 5, 2000 on the New York Stock Exchange (NYSE) under the symbol COH as a common stock (NYSE, 2011). As of August 17, 2011, the stocks last traded price was $52.68 (NYSE, 2011). The volume of shares traded was 6,646,580 and its Market Cap was 14.97 Billion (NYSE, 2011).

At the 2009 year end (June 27, 2009), the company had total current liabilities of $459,652,000 whereas the current liabilities increased to $529,036,000 at the year end in 2010 (July 3, 2010) (NYSE, 2011). The current liabilities indicate the amount of $529,036,000, which is less than the total current assets in the amount of $1,302,641,000 (NYSE, 2011). This means the company met its short term liabilities through the funds of current assets.

The largest current liabilities are accrued liabilities and accounts payable in both years. In 2009 the accrued liabilities were $348,619,000 and in 2010 liabilities increased to $422,725,000 (NYSE, 2011). In 2009 the amount of accounts payable was $103,029,000, and it increased to $105,569,000 in 2010 (NYSE, 2011).

The total liabilities of the company in 2009 were $869,294,000 and in 2010 were increased to $961,822,000 (NYSE, 2011). In 2009, the long

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