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.
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
Governor Spencer Cox signed two measures restricting how easily children in the state can access platforms like TikTok and Twitter, setting the precedent in the U.S.
Freada Kapor Klein, founder of Level Playing Field Institute, joined Cheddar News to provide some insight into the ongoing inequitable treatment of women in the world of finance.
Activision Blizzard on Thursday released its first annual report on diversity and inclusion, and the results showed that the company has a long way to go before hitting its goals.
As other parts of the economy are roiled by crisis, gas prices are holding steady. The national average price for gasoline fell four cents to $3.43 per gallon last week, according to AAA's weekly survey.
Hyundai and Kia are telling the owners of more than 571,000 SUVs and minivans in the U.S. to park them outdoors because the tow hitch harnesses can catch fire while they are parked or being driven.
The Federal Trade Commission (FTC) has proposed a new rule that would make it easier for consumers to cancel free subscriptions. The so-called "click to cancel" provision requires sellers to make it as easy for users to cancel subscriptions as it was to subscribe.
