• DEUTSCH

S

Sales working budget

Sales working budget expenditures relate to advertising and promotion initiatives at the point of sale as well as store fittings and furniture. As sales working budget expenses are channel-specific, they are allocated to the Group’s operating segments.

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.

Toxproof mark/TÜV Rheinland Group

The Toxproof mark is a safety mark issued by TÜV Rheinland, especially for testing the quantities of toxins in products.

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.

VOC (Volatile Organic Compounds)

Volatile organic compounds (VOCs) are organic chemical compounds that can vapourise into the air and may be harmful and cause breathing and health problems. VOCs are by-products of the shoe manufacturing process.

W

Weighted average cost of capital (WACC)

Calculation of the cost of capital according to the debt / equity structure, utilising a weighted average cost of capital (WACC) formula. The cost of equity is typically computed utilising a risk-free rate, market risk premium and a beta factor. The cost of debt is calculated through the risk-free rate, credit spread and average tax rate.

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.

Working capital turnover

Shows how often a working capital item was used in and replaced by the generation of sales in the period under review. The ratio shows how long working capital is tied up and thus is an indicator of the volume of capital needed to generate sales. The higher the ratio, the more positive it is deemed to be.
Working capital turnover = net sales / working capital.

World Business Council for Sustainable Development (WBCSD)

The WBCSD is a global association of some 200 international companies dealing exclusively with business and sustainable development see also www.wbcsd.org.

World Federation of the Sporting Goods Industry (WFSGI)

The WFSGI is an independent non-profit organisation formed by sporting goods brands, manufacturers, suppliers, retailers and other sporting industry-related businesses. It is the world authoritative body for the sporting goods industry and is officially recognised by the International Olympic Committee (IOC) as the industry representative see also www.wfsgi.org.