The selected historical financial data presented below as of and for each of the fiscal years in the five-year period ended June 30, 2018 has been derived from the Company’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(5)
June 30, 2018(1)
July 1, 2017
July 2, 2016(2)
June 27, 2015(3)
June 28, 2014(4)
(millions, except per share data)
Consolidated Statements of Operations:
Net sales
$
5,880.0
$
4,488.3
$
4,491.8
$
4,191.6
$
4,806.2
Gross profit
3,853.9
3,081.1
3,051.3
2,908.6
3,297.0
Selling, general and administrative ("SG&A") expenses
3,183.1
2,293.7
2,397.8
2,290.6
2,176.9
Operating income
670.8
787.4
653.5
618.0
1,120.1
Net income
397.5
591.0
460.5
402.4
781.3
Net income per share:
Basic
$
1.39
$
2.11
$
1.66
$
1.46
$
2.81
Diluted
$
1.38
$
2.09
$
1.65
$
1.45
$
2.79
Weighted-average basic shares outstanding
285.4
280.6
277.6
275.7
277.8
Weighted-average diluted shares outstanding
288.6
282.8
279.3
277.2
280.4
Dividends declared per common share
$
1.350
$
1.350
$
1.350
$
1.350
$
1.350
Consolidated Percentage of Net Sales Data:
Gross margin
65.5
%
68.6
%
67.9
%
69.4
%
68.6
%
SG&A expenses
54.1
%
51.1
%
53.4
%
54.6
%
45.3
%
Operating margin
11.4
%
17.5
%
14.5
%
14.7
%
23.3
%
Net income
6.8
%
13.2
%
10.3
%
9.6
%
16.3
%
Consolidated Balance Sheet Data:
Working capital
$
1,494.4
$
3,199.5
$
1,346.2
$
1,671.8
$
1,042.1
Total assets
6,678.3
5,831.6
4,892.7
4,666.9
3,663.1
Cash, cash equivalents and investments
1,250.0
3,158.7
1,878.0
1,931.8
1,353.1
Inventory
673.8
469.7
459.2
485.1
526.2
Total debt
1,600.6
1,579.5
876.2
890.4
140.5
Stockholders' equity
3,244.6
3,001.9
2,682.9
2,489.9
2,420.6
Fiscal Year Ended
June 30, 2018(1)
July 1, 2017
July 2, 2016(2)
June 27, 2015(3)
June 28, 2014(4)
Store Data:
Stores open at fiscal year-end:
Coach North America stores
402
419
432
462
539
Coach International stores
585
543
522
503
475
Kate Spade North America stores
200
—
—
—
—
Kate Spade International stores
142
—
—
—
—
Stuart Weitzman North America stores
68
69
64
46
—
Stuart Weitzman International stores
35
12
11
8
—
Total stores open at fiscal year-end
1,432
1,043
1,029
1,019
1,014
Store square footage at fiscal year-end:
Coach North America stores
1,835,543
1,884,204
1,892,146
1,917,851
2,042,717
Coach International stores
1,256,525
1,166,920
1,086,315
1,030,695
918,995
Kate Spade North America stores
495,121
—
—
—
—
Kate Spade International stores
171,754
—
—
—
—
Stuart Weitzman North America stores
117,869
117,944
105,264
81,877
—
Stuart Weitzman International stores
47,498
18,808
12,556
9,224
—
Total store square footage at fiscal year-end
3,924,310
3,187,876
3,096,281
3,039,647
2,961,712
Average store square footage at fiscal year-end:
Coach North America stores
4,566
4,497
4,380
4,151
3,790
Coach International stores
2,148
2,149
2,081
2,049
1,935
Kate Spade North America stores
2,476
—
—
—
—
Kate Spade International stores
1,210
—
—
—
—
Stuart Weitzman North America stores
1,733
1,709
1,645
1,780
—
Stuart Weitzman International stores
1,357
1,567
1,141
1,153
—
(1)
The Company acquired Kate Spade & Company in the first quarter of fiscal 2018 (which included the impact of an additional 180 stores in North America and 95 stores internationally). During the third quarter of fiscal 2018, the Company acquired designated assets of its Stuart Weitzman distributor in Northern China (which included the impact of an additional 20 stores internationally), entered into an agreement to obtain operational control of the Kate Spade Joint Ventures (which included the impact of an additional 50 stores) and acquired designated assets of its Coach distributor in Australia and New Zealand (which included the impact of an additional 21 stores internationally).
(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 in North America).
(3)
The Company acquired Stuart Weitzman Holdings LLC in the fourth quarter of fiscal 2015.
(4)
The Company acquired the remaining 50% interest in its Europe business for Coach from its former joint venture partner in the first quarter of fiscal 2014.
(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 2018, fiscal 2017 and fiscal 2016. During fiscal 2015, the Company recorded adjustments in cost of sales and SG&A expenses of $5.0 million and $140.9 million, respectively, related to accelerated depreciation and lease termination charges as a result of store updates and closures within North America and select international stores, organizational efficiency charges and charges related to the destruction of inventory. In fiscal 2015 the Company also recorded adjustments in cost of sales and SG&A expenses of $4.7 million and $19.9 million, respectively, related to the acquisition of Stuart Weitzman. During fiscal 2014, the Company recorded adjustments in cost of sales and SG&A expenses of $82.2 million and
$49.3 million, respectively, related to inventory and fleet related costs, including impairment, accelerated depreciation and severance related to store closures. The following table reconciles the Company's reported results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") to our adjusted results that exclude these items:
filings.tools