Adidas is bracing for a $1.3 billion loss in revenue and $535 million drop in profit in 2023 if efforts to sell off its inventory of Yeezy-branded sneakers fail.
Ye, formerly known as Kanye West, was once synonymous with Adidas. Now the German sneaker giant is dealing with the fallout of ending its partnership with the rapper and fashion designer last year after he made a series of anti-semitic remarks.
The biggest question facing the company is whether it can repurpose its Yeezy products or if it will be forced to write them off, putting a massive dent in revenue and profits. Regardless of the outcome, Adidas is expecting a challenging year ahead.
“The numbers speak for themselves. We are currently not performing the way we should”, said CEO Bjørn Gulden in a news release. “2023 will be a year of transition to set the base to again be a growing and profitable company."
He added that the company will focus on creating "brand heat" and improving its "product engine." "We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again. But we need some time," he said.
Shares were down around 9 percent in pre-trading on Friday after the announcement.
Grant Buckholt, financial adviser with Northwestern Mutual, joined Cheddar News to discuss what exactly a holiday bonus entails and provided tips on how to budget it.
New car sales in the U.S. are forecasted to grow next year.
Many of us will look to chart a path to tackling finances as the New Year arrives. Jamila Souffrant, author of "Your Journey to Financial Freedom," joined Cheddar News to discuss steps on what to take if you're looking to take control of your life for financial freedom.
If you're looking to upgrade your home entertainment system, Vizio may have you covered, especially this holiday season. Phil Schneider, head of device sales with Vizio, spoke with Cheddar News about what's currently in demand.
There are reports that Warner Brothers Discovery and Paramount have held talks to join forces. Cheddar News breaks it down to discuss what this could mean for the media landscape and for viewers.
Thursday kicks off the busiest holiday travel period of the year.
SiriusXM is facing a new lawsuit for allegedly trapping customers into subscription plans.
IKEA says it expects shipping delays and other product availability issues due to ongoing attacks by Houthi rebels in the Red Sea.
There are multiple reports that talks are underway for a potential merger of Warner Brothers Discovery and Paramount Global.
Stocks jumped after the opening bell on Thursday a day after Wall Street suffered its worst loss since October.
