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.
At its annual health event on Tuesday, Google announced a series of changes to its search tool that it said will make it easier to access information about affordable health care services.
The Environmental Protection Agency (EPA) is proposing the nation's first-ever drinking water standard around polyfluoroalkyl substances (PFAS) or "forever chemicals."
It's Women's History Month and Tuesday marks Equal Pay Day. To honor the occasion, Laura Gassner Otting, author of Limitless: How to Ignore Everybody, Carve Your Own Path, and Live Your Best Life, spoke with Cheddar News' correspondent Shannon LaNier about how to properly value yourself and get the pay you deserve, regardless of your gender.
Southwest Airlines Co. on Tuesday outlined a plan to strengthen its operational resilience after a winter storm late last year led to widespread cancellations and delays.
