additionally, the retailer converted footwear from a licensed to an owned segment in 2006, and re-opened operations in 2008. At the same time, the company gained direct control of its licensed handbags and small leather goods business. Since then, the leather goods category has grown at an average of 20% annually. Currently, handbags, footwear, and leather goods represent less than 10% of Ralph Lauren's total consolidated sales. The company has stated that it wants to grow this category to about 20% of its top-line, which should have favorable margin implications, as it is a higher margin category than apparel.