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.
UBS says it’s bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse.
San Francisco-based technology startup Illumix just closed a $18 million Series A round of funding, and in a rare move for the Shark Tank star, Mark Cuban contributed.
Austin Graff, founder and CIO of Opal Capital in Austin, Texas, offers his take on why stocks opened higher Wednesday, saying investors appear tentatively optimistic about regulatory actions being taken around struggling banks, even as they remain worried about the long-term consequences of federal action on the sector. "
Credit Suisse violated a plea agreement with U.S. authorities by failing to report secret offshore accounts that wealthy Americans used to avoid paying taxes, U.S. lawmakers said Wednesday.
Stocks are rising Wednesday as Wall Street shakes off a bit more of the fear that dominated it earlier this month.
Honda is recalling more than 330,000 vehicles because heating pads behind both side-view mirrors may not be bonded properly, which could lead to the mirror glass falling out and increase the risk of a crash.
Lyft co-founder Logan Green is stepping down as CEO with David Risher, a former Amazon and Microsoft executive, set to take his place.
PepsiCo just unveiled a new nostalgic logo, and it might look familiar to long-time fans of the bubbly beverage. The new logo is a slightly modified version of the one last used in the 1990s.
According to a Reuters report, JPMorgan CEO Jamie Dimon is being deposed over the bank's relationship with sex offender Jeffrey Epstein.
U.S. highway safety regulators have opened yet another investigation into problems with Teslas, this time tied to complaints that the seat belts may not hold people in a crash.
