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.
Wall Street saw another day of losses in the market amid continued concerns over the banking sector and as investors digest the latest inflation data. Francis Oh, Asia-Pacific CEO of Qraft Technologies, joined Cheddar News to break down what can be expected with the Federal Reserve's move on interest rates and what to look out for with A.I. stocks, which are seeing big gains.
Adidas has decided to try to sell a portion of its remaining Yeezy shoe inventory and donate the proceeds to chartitable organizations, CEO Bjørn Gulden said Thursday.
Peloton is recalling more than 2 million exercise bikes over a safety concern with its bike seat post, and the Consumer Product Safety Commission said it's received some injury reports.
Peloton is recalling more than 2 million of its exercise bikes because the bike’s seat post assembly can break during use, posing fall and injury hazards.
Cheddar News reporter Ashley Mastronardi tracks the rise of the "mom-fluencer" or working mothers who have left their jobs to become full-time content creators. While not a new phenomenon, experts say the trend has gained momentum since the start of the pandemic.
