The selected historical financial data presented below as of and for each of the fiscal years in the five-year period ended July 2, 2016 has been derived from Coach’s audited Consolidated Financial Statements. The financial data should be read in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Consolidated Financial Statements and Notes thereto and other financial data included elsewhere herein.
Fiscal Year Ended(1)
July 2, 2016(2)(5)
June 27, 2015(3)(5)
June 28, 2014(4)(5)
June 29, 2013(4)(5)
June 30, 2012(4)(5)
(millions, except per share data)
Consolidated Statements of Income:
Net sales
$
4,491.8
$
4,191.6
$
4,806.2
$
5,075.4
$
4,763.2
Gross profit
3,051.3
2,908.6
3,297.0
3,698.1
3,466.1
Selling, general and administrative ("SG&A") expenses
2,397.8
2,290.6
2,176.9
2,173.6
1,954.1
Operating income
653.5
618.0
1,120.1
1,524.5
1,512.0
Net income
460.5
402.4
781.3
1,034.4
1,038.9
Net income:
Per basic share
$
1.66
$
1.46
$
2.81
$
3.66
$
3.60
Per diluted share
$
1.65
$
1.45
$
2.79
$
3.61
$
3.53
Weighted-average basic shares outstanding
277.6
275.7
277.8
282.5
288.3
Weighted-average diluted shares outstanding
279.3
277.2
280.4
286.3
294.1
Dividends declared per common share
$
1.350
$
1.350
$
1.350
$
1.238
$
0.975
Consolidated Percentage of Net Sales Data:
Gross margin
67.9
%
69.4
%
68.6
%
72.9
%
72.8
%
SG&A expenses
53.4
%
54.6
%
45.3
%
42.8
%
41.0
%
Operating margin
14.5
%
14.7
%
23.3
%
30.0
%
31.7
%
Net income
10.3
%
9.6
%
16.3
%
20.4
%
21.8
%
Consolidated Balance Sheet Data:
Working capital
$
1,346.2
$
1,671.8
$
1,042.1
$
1,348.4
$
1,086.4
Total assets
4,892.7
4,666.9
3,663.1
3,531.9
3,104.3
Cash, cash equivalents and investments
1,878.0
1,931.8
1,353.1
1,332.2
923.2
Inventory
459.2
485.1
526.2
524.7
504.5
Total debt
876.2
890.4
140.5
1.0
23.4
Stockholders' equity
2,682.9
2,489.9
2,420.6
2,409.2
1,992.9
Fiscal Year Ended(1)
July 2, 2016(2)
June 27, 2015(3)
June 28, 2014(4)
June 29, 2013(4)
June 30, 2012(4)
Coach Operated Store Data:
Stores open at fiscal year-end:
North American retail stores
228
258
332
351
354
North American outlet stores
204
204
207
193
169
Coach International
522
503
475
409
368
Stuart Weitzman stores
75
54
—
—
—
Total stores open at fiscal year-end
1,029
1,019
1,014
953
891
Store square footage at fiscal year-end:
North American retail stores
659,376
728,833
910,003
952,422
959,099
North American outlet stores
1,232,770
1,189,018
1,132,714
982,202
789,699
Coach International
1,086,315
1,030,695
918,995
768,567
665,396
Stuart Weitzman stores
117,820
91,101
—
—
—
Total store square footage at fiscal year-end
3,096,281
3,039,647
2,961,712
2,703,191
2,414,194
Average store square footage at fiscal year-end:
North American retail stores
2,892
2,825
2,741
2,713
2,709
North American outlet stores
6,043
5,829
5,472
5,089
4,673
Coach International
2,081
2,049
1,935
1,879
1,808
Stuart Weitzman stores
1,571
1,687
—
—
—
(1)
The Company’s fiscal year ends on the Saturday closest to June 30. Fiscal year 2016 was a 53-week year. Fiscal years 2015, 2014, 2013 and 2012 were each 52-week years.
(2)
The Company acquired the Stuart Weitzman Canada distributor in the fourth quarter of fiscal 2016 (which included the impact of an additional 14 retail stores).
(3)
The Company acquired Stuart Weitzman in the fourth quarter of fiscal 2015.
(4)
The Company acquired its international businesses from its former distributors as follows: fiscal 2014 — the remaining 50% interest in Europe; fiscal 2013 — Malaysia and South Korea; fiscal 2012 — Singapore and Taiwan.
(5)
For all fiscal years presented below, the Company recorded certain items which affect the comparability of our results. See item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for further information on the items related to fiscal 2016, fiscal 2015, and fiscal 2014. During fiscal 2013, the Company incurred charges recorded in SG&A expenses and cost of sales of $48.4 million and $4.8 million, respectively, relating to the strategic reassessment of the Reed Krakoff business, streamlining our organizational model and reassessing the fleet of our retail stores and inventories. During fiscal 2012, the Company decreased its provision for income taxes by $23.9 million, primarily as a result of recording the effect of a revaluation of certain deferred tax asset balances due to a change in Japan's corporate tax laws and the favorable settlement of a multi-year transfer pricing agreement within Japan. The Company used the net income favorability to contribute an aggregate $39.2 million to the Coach Foundation. The following table reconciles the Company's reported results on a U.S. GAAP basis to our adjusted results that exclude these items:
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