Business Context and Reporting Period
This Form 8-K Current Report was filed by Coach, Inc. (not Tapestry, Inc.) on December 13, 2002, regarding an event dated December 12, 2002. The filing discloses the establishment of a Rule 10b5-1 trading plan by the company's Chairman and CEO, Lew Frankfort.
Key Financial Metrics
The filing does not provide financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial data point provided is the closing stock price of $32.31 per share on December 11, 2002.
Material Changes and Insider Trading Plan
On December 12, 2002, Lew Frankfort entered into a trading plan with Goldman, Sachs & Co. to sell approximately 300,000 shares of Coach common stock. Key details include:
- Source of Shares: Shares will be acquired through the exercise of options for approximately 867,000 shares during the week of December 16, 2002.
- Net Proceeds: After withholding shares for purchase price and taxes, Mr. Frankfort expects to receive approximately 345,000 shares.
- Sale Schedule: Sales will occur at market prices during the first eight months of 2003, timed to follow earnings announcements for fiscal quarters ending December 28, 2002, March 29, 2003, and June 28, 2003.
- Expiration: The plan expires on August 30, 2003.
- Purpose: To diversify assets in an orderly manner while maintaining a current ownership level of approximately 332,000 shares.
Outlook and Management Commentary
Management commentary is limited to the purpose of the trading plan. Mr. Frankfort intends to maintain his current ownership level post-exercise. He will continue to hold options to purchase approximately 2,370,000 shares, 40,000 restricted stock units, and approximately 58,000 deferred stock units. No specific business outlook, risks, or contingencies regarding company operations are disclosed in this filing.
Investor Verification Checklist
- Verify the actual execution of the option exercises scheduled for the week of December 16, 2002.
- Monitor subsequent filings (Form 4) to confirm the timing and volume of share sales under the Rule 10b5-1 plan.
- Confirm the company's fiscal year end dates (December 28, 2002) to align with the trading blackout periods mentioned.
- Note that the registrant is Coach, Inc., distinct from Tapestry, Inc., despite the metadata request.