Accounting Paper

ADIDAS GROUP ANNUAL REPORT

Tatum Forrest

Strayer University

Professor Camp

ACCT 100

March 14, 2013

Adidas Group is a German company with roots in Herzogenaurach near Nuremberg, Multinational-Corporation that designs and manufactures sports clothing, shoes and accessories. The work of brothers Adolf (Adi) and Rudolf (Rudi) Dassler, Dassler Brothers Shoe Factory focused on creating the best shoe for each sport and was one of the earliest to partner with athletes for promotion and feedback. After World War II the brothers went their separate ways, with Adi forming adidas. Present day, Adidas is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world behind Nike. Additionally, Adidas clothing and shoe designs typically feature three parallel bars as it logo.

Identify and explain the main sections of the annual report.

Adidas Group 2011’s Annual Report main sections are the following: Targets/ Results/ Outlook, Financial Highlights, Group Brands, To Our Shareholders, Group Management Report-Our Group, Group Management Report-Financial Review, Consolidated Financial Statements and Additional Information.

The first section Targets, Results and Outlook displays Adidas expectations and goals for 2011-2012. Prior to 2011, Adidas Group stockholder reviewed their 2010 Adidas Annual Report findings, which provided guidance for implementing targets (goals) for 2012. Therefore, Adidas Group target was to increase at a mid to high single digit rate. This included increasing at a mid-single digit rate for the following: wholesale segment, retail segment, other business, Taylor Made-Adidas Golf, Rockport and Reebok-CCM Hockey. The targeted gross margin range was 47.5%- 48.0% and operating margin increase to a level between 7.5%-8.0%. (Adidas Group Annual Report, 2011). The average operating working capital (in % of sales) was expected to increase. Which would assist in boosting and meeting company...