Submitted by: Submitted by minebuster01
Views: 580
Words: 1169
Pages: 5
Category: Business and Industry
Date Submitted: 01/22/2011 10:19 AM
Executive summary
We face intense competition in the product lines and markets in which we operate. Our competitors include private label retailers, including some of Coach’s wholesale customers, as well as other well known handbags and accessories companies. There is a risk that our competitors may develop new products that are more popular with our customers. We may be unable to anticipate the timing and scale of such product introductions by competitors, which could harm our business. Our ability to compete also depends on the strength of our brands, whether we can attract and retain key talent, and our ability to protect our trademarks and design patents. A failure to compete effectively could adversely affect our growth and profitability.
We face risks associated with operating in international markets.
We operate on a global basis, with approximately 25% of our net sales coming from operations outside the U.S. However, sales to our international wholesale customers are denominated in U.S. dollars. While geographic diversity helps to reduce the Company’s exposure to risks in any one country, we are subject to risks associated with international operations, including, but not limited to: a) changes in exchange rates for foreign currencies, which may adversely affect the retail prices of our products and result in decreased international consumer demand or increase our supply costs in those markets, b) political or economic instability or changing macroeconomic conditions in our major markets, and c) changes in foreign or domestic legal and regulatory requirements resulting in the imposition of new or more onerous trade restrictions, tariffs, embargoes, exchange or other government controls.
Coach, Inc. Common Stock
(NYSE: COH)

After Hours: 37.43  -0.38 (-1.00%) 4:42PM EDT



Background
Founded in 1941, Coach was acquired by Sara Lee Corporation (‘‘Sara Lee’’) in 1985. In June 2000, Coach was incorporated in the state of...