Reebok 2015 Annual Report Download - page 264

ADDITIONAL INFORMATION
Glossary
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GLOSSARY
/ A
ATHLEISURE
The term is composed of the words athletic and leisure. It describes
a fashion trend of sportswear no longer being just meant for
training but increasingly shaping everyday clothing.
/ B
BACKLOGS
Also called order backlogs. The value of orders received for future
delivery. Most retailers’ orders are received six to nine months in
advance.
/ C
CAPITAL EXPENDITURE
Total cash expenditure used for the purchase of tangible and
intangible assets, excluding acquisitions and finance leases.
CASH POOLING
A cash management technique for physical concentration of
cash. Cash pooling allows the adidas Group to combine credit and
debit positions from various accounts and several subsidiaries
into one central account. This technique supports our in-house
bank concept where advantage is taken of any surplus funds of
subsidiaries to cover cash requirements of other subsidiaries, thus
reducing external financing needs and optimising our net interest
expenses.
COMPARABLE COMP STORE SALES
Sales generated in stores which have been open for the entire
prior financial year and are currently operating. Remodelled stores
are included if the store format and store size have remained
unchanged. Comparable store sales therefore show the organic
growth of the retail business and do not include sales generated
from new store openings.
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.
CONTROLLED SPACE
Includes own-retail business, mono-branded franchise 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.
CONVERSION RATE
A key ratio in retail business describing the number of buying
customers compared to those who entered the store without buying
something; i.e. a 25% conversion rate means that 100 persons
entered a store with 25 of them buying something.
/ E
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.
/ F
FINANCIAL LEVERAGE
Ratio reflecting the role of borrowings within the financing structure
of a company.
FIRST FASTSPORTS COMPANY
We have set ourselves the goal to become the first fast sports
company by 2020. This means that it is our ambition to increase
the share of so-called ‘speed-enabled products’ to 50% of our net
sales by 2020 from 15% of net sales in 2015. Our initiatives will
put us in the position to provide consumers with appealing and
up-to-date products. As a consequence, our full-price share of
sales is forecasted to improve by 20 percentage points by 2020.
Financial leverage net borrowings
= × 100
shareholders’ equity