ANNUAL REPORT PROJECT

The Annual Report Project - Coach, Inc.

INTRODUCTION1

Business Description1

Business Achievements3

Independent Auditors4

Comments of Auditor4

INDUSTRY SITUATION AND COMPANY PLANS5

FINANCIAL STATEMENTS8

Income Statement8

Balance Sheet8

ACCOUNTING POLICIES9

Fiscal Year9

Use of Estimates9

Consolidation's Principles10

Cash Equivalents10

Investments10

Credit Risk and its Concentration11

FINANCIAL ANALYSIS11

Liquidity Ratios11

Working Capital11

Current Ratio12

Inventory turnover13

Profitability Ratios14

Profit Margin14

Return on Assets15

Debt to Equity16

Solvency17

Debt to Total Assets17

Cash Debt coverage Ratio18

REFERENCES19

The Annual Report Project

Introduction

Business Description

Coach, Incorporation (Inc.) is engaged in the gift products and accessories' designing and marketing for both men and women. Coach Inc. is an accessories' marketer that includes men's and women's bags, business cases, jewelry, sunwear, wearables, fragrance, watches and travel bags. Coach Inc. primarily operates in the Japan and United States (U.S) and its two business segments i.e. D2C - Direct-to-Consumer and indirect. The Direct-to-Consumers includes sales to consumers by the operations of company in Honk Kong, North America, Macau, Singapore, Internet, Taiwan and it includes sales to wholesale distributors and customers in over. The distributors and wholesale customers are present in more than 20 countries that include the United States (U.S) as well. The headquartered of the company is located in the New York City and 18,000 employees are working for the company, as of 30 June, 2012 (Coach 2013).

The major trademarks of Coach, Inc. include the lozenge design, tag design, Coach, the Signature C design, The Heritage Logo and Coach Op Art design. The Coach, Inc. also operates from the Korea and Malaysia in beginning with the 1st quarter of the year of 2013. The company-owned its retail stores and they all are located in the centers of regional shopping and the major areas of metropolitan in the Canada and United States. The factory outlet and stores are located in different outlet and centers that are considered more 30 miles away from particular big markets. In North America, Coach Inc. operated up-to 354 retail outlets including 169 stores.

Source: http://www.marketwatch.com/investing/stock/coh

The current stock price of Coach, Inc. is 59.00 USD and it is traded on the New York Stock Exchange. Coach, Inc. has announced that dividend in cash is $0.3375 will be paid to its shareholders that had declared by the BOD - Board of Directors (Coach 2013).

The subsidiaries of company Coach China, Coach Japan and Coach Singapore and Taiwan perform from the department store and other particular shop-in-shop locations. The e-commerce website is also operated from the Coach Japan. This company also operates freestanding flagship and department store (i.e. shop-in-shop locations as well as e-commerce store for the brand of Reed Krakoff. The segment of D2C - (direct-to-consumer) includes the online operations of the company at www.coach.com. The United States (U.S) wholesale operations are comprised by the indirect segment (Coach 2013). Royalties and Coach International (international operations of wholesale) earned on licensed product. Coach sells its products to almost 990 locations based on wholesale in the United States (U.S) and Canada. To international wholesale distributors, the company sells its products through the Coach International. To a selected distributors' group, Coach sells its products and then these particular products are sold to the freestanding retailers and department ...