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.
Nodi is giving kids a safe way to stay connected before they're ready for a smartphone. CEO Pascal Leonard Blum breaks down how the device works for families.
From coast to coast, gas prices are telling different stories. AAA's Aixa Diaz explains what's behind the numbers and what it means for American drivers.
AutoStore’s CPO Parth Joshi explains its new AI software layer designed to optimize warehouse robots in real time and unlock smarter, more efficient fulfillment
ROC CEO B. Scott Swann joins us live from the NYSE to discuss the company's IPO and how VisionAI is transforming facial recognition for defense and security.
If you asked anyone in 2007 what a “subprime mortgage” was, they wouldn’t have any idea. So here’s a question for you: Do you know what the private credit
Matternet founder and CEO Andreas Raptopoulos on the state of drone delivery in the U.S. and what it will take to make aerial delivery a mainstream reality.
