Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A
AFIRM (Apparel and Footwear International Restricted Substances List Management Working
Group)
A centre of excellence comprising experts whose aim it is to reduce the use and impact of harmful substances
in the apparel and footwear supply chains see also www.afirm-group.org.
Beta coefficient
Indicates a stock’s relative risk. A beta coefficient of more than one indicates that the stock has a higher risk
than the overall market. Conversely, a beta coefficient of less than one indicates a lower risk.
Capital expenditure
Total cash expenditure used for the purchase of tangible and intangible assets, excluding acquisitions and
finance leases.
Celliant fibres
Celliant is a component for use in the textile industry. It is a fabric material that modifies visible and infrared
light, redirecting this energy back to the body to increase blood flow and blood oxygen levels.
Commercial paper
Tradable unsecured promissory notes issued for the purpose of short-term financing. Commercial paper is
issued on an ongoing, revolving basis with maturities typically between seven days and 12 months or more.
Concession corners
Retail space that is fully operated by one brand of the adidas Group and is part of a larger sales area operated
by a retail partner.
Consumer price index (CPI)
Measure of the average price of consumer goods and services purchased by households. Determined by
measuring the price of a standard group of goods meant to represent the typical market basket of a typical
urban consumer. The percentage change in the CPI is a measure of inflation.
Controlled space
Controlled space includes own-retail business, mono-branded stores, shop-in-shops, joint ventures with retail
partners and co-branded stores. Controlled space offers a high level of brand control and ensures optimal
product offering and presentation according to brand requirements.
Corporate Governance
Distribution of rights and responsibilities among the primary stakeholders in a company, in particular
shareholders, the Executive Board and the Supervisory Board.
Cost of sales
The amount the Group pays to third parties for expenses associated with producing and delivering our
products. Own-production expenses are also included in the Group’s cost of sales.
Credit spread
Risk premium which represents the yield difference between risk-free government bonds and corporate bonds
with the same duration. A potential investor demands an additional yield (risk premium = credit spread) for the
higher risk of default with corporate bonds versus government bonds.
Currency-neutral
Financial figures translated at prior-year exchange rates. This indicates increases or decreases to reported
figures by eliminating variances arising from currency translation, thus reflecting the underlying business
performance.
DAX-30 (DAX)
The DAX (Deutscher Aktienindex) is a blue chip stock market index consisting of the 30 major German
companies trading on the Frankfurt Stock Exchange.
Emerging markets
Developing countries showing potential for growth in both economic strength and private wealth in the future.
For the adidas Group, emerging markets are the developing countries of Asia, Eastern Europe, Latin America
and Africa.
Equity derivatives
Class of derivatives whose value is at least partly derived from one or more underlying equity securities.
Options and futures are by far the most common equity derivatives, however there are many other types of
equity derivatives that are actively traded.
Equity ratio
Shows the role of shareholders’ equity within the overall financing structure of a company.
Equity ratio = (shareholders’ equity / total assets) × 100.
Equity-to-fixed-asset ratio
Defines the percentage of non-current assets financed by equity.
Equity-to-fixed-asset ratio = equity / non-current assets.
E-tailer
Retailer that primarily uses the internet as a medium for consumers to shop for the goods or services provided.
E-tailers optimise the internet potential to attract, convert and retain consumers.
F
Fair value
Amount at which assets are traded fairly between business parties. Fair value is often identical to market price.
Finance lease
Method of acquiring an asset that involves a lease with a special leasing company for a specific, non-
terminable initial leasing term. The investment risk is borne by the lessee.
Financial leverage
Ratio reflecting the role of borrowings within the financing structure of a company.
Financial leverage = (net borrowings / shareholders’ equity) × 100.
Forward contract
Agreement to exchange amounts of one currency for another currency at an agreed fixed rate at a future date.
Franchising
Form of business by which the owner (franchisor) of a product, service or method obtains distribution through
affiliated dealers (franchisees). The franchisor offers assistance in organising, training, merchandising,
marketing and managing in return for a monetary consideration.
Goodwill
Intangible asset that quantifies the price that a buyer of a company has paid for the reputation, know-how and
market position of the acquired company. Goodwill is the excess of the amount paid over the fair value of the
net assets acquired at the purchase date.
Go-to-market
All instruments, tools and channels used to connect with consumers in order to best fulfil their needs.
Gross margin
Gross profit as a percentage of net sales.
Gross margin = (gross profit / net sales) × 100.
Gross profit
Difference between net sales and the cost of sales.
Gross profit = net sales – cost of sales.
H
Halo effect
The halo effect refers to the cognitive bias effect that when we consider something good (or bad) in one
category, we are likely to make a similar evaluation in other (related) categories.
Hardware
Product category which comprises equipment that is used rather than worn by the athlete, such as bags, balls,
fitness equipment, golf clubs and hockey sticks.
Hedging
A strategy used to minimise exposure to changes in prices, interest rates or exchange rates by means of
derivative financial instruments (options, swaps, forward contracts, etc.) see also Natural hedges.
I
Institutional investors
Investors such as investment companies, mutual funds, brokerages, insurance companies, pension funds,
investment banks and endowment funds. They are financially sophisticated, with a greater knowledge of
investment vehicles and risks, and have the means to make large investments.
Interest coverage
Indicates the ability of a company to cover net interest expenses with income before net interest and taxes.
Interest coverage = (income before net interest expense and tax / net interest expense) × 100.
ISO 14001
International Organization for Standardization (ISO) Standard 14001 specifies the requirements for an
environmental management system within companies/organisations. It applies to those environmental aspects
over which the organisation has control and over which it can be expected to have an influence (e.g. energy
and water consumption).
J
Joint venture
A cooperation between companies involving the foundation of a new, legally independent business entity in
which the founding companies (two or more companies) participate with equity and significant resources.
K
Key accounts
Wholesalers or retailers which are primary customers for the Group and account for a large percentage of
sales.
Kicks
Informal word for athletic footwear.
Kinesiology
The science of the psychological mechanisms associated with human movement.
L
Leather Working Group
The Leather Working Group (LWG) was formed in April 2005 to promote sustainable and appropriate
environmental stewardship practices within the leather industry see also www.leatherworkinggroup.com.
Licensed apparel
Apparel products which are produced and marketed under a licence agreement. The adidas Group has licence
agreements with sports organisations (e.g. FIFA, UEFA, IOC), sports leagues (e.g. NFL, NBA), professional
teams (e.g. Real Madrid, AC Milan) and universities (e.g. UCLA, Notre Dame).
Lien
The right to take and hold or sell the asset of a debtor as security or payment for a debt.
Mono-branded stores
adidas, Reebok or Rockport branded stores not operated or owned by the adidas Group but by franchise
partners. This concept is used especially in the emerging markets such as China, benefiting from local
expertise of the respective franchise partners see also Franchising.
N
Natural hedges
Offset of currency risks that occurs naturally as a result of a company’s normal operations, without the use of
derivatives. For example, revenue received in a foreign currency and used to pay known commitments in the
same foreign currency.
Net borrowings
Portion of gross borrowings not covered by the sum of cash and short-term financial assets. If a negative figure
is shown, this indicates a net cash position.
Net borrowings = short-term borrowings + long-term borrowings – cash – short-term financial assets.
Non-controlling interests
Part of net income which is not attributable to the reporting company as it relates to outside ownership interests
in subsidiaries that are consolidated with the parent company for financial reporting purposes.
O
OHSAS 18000
OHSAS 18000 is an international occupational health and safety management system specification.
Operating overheads
Expenses which are not directly attributable to the products or services sold, such as costs for sales, marketing
overhead costs, logistics, research and development, as well as general and administrative costs, but not
including costs for promotion, advertising and communication.
Operating profit
Profit from operating activities after cost of sales and other operating expenses.
Operating profit = gross profit + royalty and commission income + other operating income – sales working
budget – marketing working budget – operating overheads.
Option
Financial instrument which ensures the right to purchase (call option) or to sell (put option) a particular asset
(e.g. shares or foreign exchange) at a predetermined price (strike price) on or before a specific date.
P
Performance business
In the sporting goods industry, business related to technical footwear and apparel, used primarily in doing
sports.
Price points
Specific selling prices, normally using “psychological” numbers, for example a product price of US $ 99.99
instead of US $ 100.
Private investor
Individual who invests his/her own money in the capital market, as opposed to an institutional investor.
Private placement
Placement of debt securities directly to institutional investors, such as banks, mutual funds, insurance
companies, pension funds and foundations.
Product licensees
Companies that have the authorisation to use the name of a brand or business for the production and sale of
products. For adidas, licensed products include cosmetics, watches and eyewear, for Reebok, fitness
equipment and for TaylorMade-adidas Golf, bags and gloves.
Promotion partnerships
Partnerships with events, associations, leagues, clubs and individual athletes. In exchange for the services of
promoting the adidas Group, the party is provided with cash and/or promotional material.
Push-pull model
A push-pull system in the retail business describes the supply and demand dynamic between retailers and
consumers. Under the push model, products are supplied based on anticipated customer orders (speculative)
whereas in a pull model system goods are supplied based on consumer point-of-sale demands and actual
market sales trends.
R
Regions
The adidas Group distinguishes seventeen markets which are aggregated into six regions: Western Europe,
European Emerging Markets, North America, Greater China, Other Asian Markets and Latin America.
Risk-free rate
Rate of return to be expected on a risk-less investment, e.g. government bonds.
Risk premium
Extra return that the overall market or a particular stock must provide over the risk-free rate to compensate an
investor for taking a relatively higher risk.
Risk premium = market risk – risk-free rate.
Segment
Also Business Segment. Units within a company that have profit and loss responsibility. The adidas Group is
currently divided into six major business segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport,
Reebok-CCM Hockey and Other Centrally Managed Brands.
Sell-through
An indicator of how fast retailers are selling a particular product to the consumer.
Shop-in-shop
adidas, Reebok or Rockport area within a larger store. The concept may be operated by the store or the adidas
Group depending on individual arrangements. The goal of this distribution method is to give consumers a
similar experience to an own-retail environment, albeit on a smaller scale.
Signature Collection
Collection bearing the name or the brand of top athletes.
Stakeholders
All groups that have a direct or indirect interest in the efforts and results of a company, for example lenders,
shareholders, consumers, retailers, suppliers, licensees, business partners in the supply chain, employees,
international sport federations, non-governmental organisations, media, etc.
Swap
A derivative in which two counterparties agree to exchange one stream of cash flows against another stream.
Syndicated loan
A syndicated loan is one that is provided by a group of lenders and is structured, arranged and administered by
one or several commercial banks or investment banks known as arrangers.
T
Top- and bottom-line growth
A company’s bottom line is its net income, or the “bottom” figure on a company’s income statement. More
specifically, the bottom line is a company’s income after all expenses have been deducted from revenues. The
top line refers to a company’s sales or revenues.
Top-down, bottom-up
Specific concept for information and knowledge processing. Information and empowerment of management
decisions is delegated from top to bottom in a first step. After going into more detail on the bottom level, the
final information/decision is transported back to the top.
Trendscouting
Identification and commercialisation of future trends, particularly lifestyle trends.
V
Vertical retailer
A retail company that (vertically) controls the entire design, production and distribution processes of its
products.
Visual merchandising
Activity of promoting the sale of goods, especially by their presentation in retail outlets.This includes combining
products, environments and spaces into a stimulating and engaging display to encourage the sale of a product
or service.
Working capital
A company’s short-term disposable capital used to finance the day-to-day operations.
Working capital = total current assets – total current liabilities
see also Operating working capital.