Can't have that much stitching on a rain garment and expect it not to leak! Not sure what they were thinking.
Actually if sewed correctly and then putting a membrane under the embroidery will keep it from leaking.
More than likely it was not sewed properly (remember the puckering around the USA) or there was a problem with the membrane.
The stuff was so ugly the only actual repelling the rain gear did was to members of the oposite sex.