February 14, 2023: -Adidas could lose about 1.2 billion euros ($1.3 billion) in revenue in 2023 if it cannot sell its existing Yeezy stock.
The German sportswear firm scrapped its partnership with rapper and fashion designer Ye, retired known as Kanye West, the view Yeezy, in October following that he made a series of antisemitic comments.
On Thursday, the company said that it is assessing what to be done with the Yeezy inventory, which adds it has already accounted for the “significant adverse effect” of not selling the creations.
Operating profit would drop by 500 million euros if the firm fails to shift things, and Adidas anticipates sales to decline at a high single-digit rate in 2023. Adidas could be opting to write off its remaining Yeezy products.
On Friday, shares decreased by nearly 11% as traders reacted to the announcements.
The firm also forecasted one-off costs of up to 200 million euros, which left Adidas’ worst-case scenario for the time as a 700-million-euro loss for 2023.
“The digits speak for themselves. We are at present not performing as we should,” Adidas CEO Bjørn Gulden stated in a press release.
Based on unaudited numbers, Adidas’ revenues increased by 1% in 2022, while operating profit decreased from almost 2 billion euros in 2021 to nearly 669 million euros in the previous year.
Spain slams US and Israeli strikes on Iran, with Prime Minister Pedro Sánchez warning of escalation risks and signalling a more independent Spanish foreign policy stance within the EU.
Graham urges Saudi UAE to mend ties as Iran pressure intensifies, warning that Gulf divisions weaken regional security and complicate U.S.-Iran diplomacy amid Yemen and Red Sea tensions.
EU courts Gulf countries for free trade deal to protect European exports from global tariff pressures and deepen strategic partnerships with GCC states.
The European preference in military mobility plan gains support in the EU Parliament, aiming to prioritise EU infrastructure, suppliers, and control to strengthen defence readiness and strategic autonomy.
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
Leave us a message
