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.
This Valentine's Day, Americans are expected to drop billions of dollars — all in the name of love.
Peacock will launch a new interactive feature that allows fans to livestream episodes while actors from the shows provide real-time reactions and provide commentary and a Q&A.
More big-name companies are slated to report earnings next week. Cheddar News dives into what will move markets as key economic data are also set to be released.
OKCupid is teaming up with ChatGPT as it tests an AI-generated questions for matching on its app.
Jeep unveiled a limited edition Wrangler, its most expensive version yet at $115,000.
The impact of inflation continues to burden families on a wide range of issues, such as childcare.
U.S. markets ended the week in the red as investors are figuring out how the Federal Reserve will act on interest rates moving forward. Cheddar News speaks with Steve Sosnick, chief strategist at Interactive Brokers, who breaks down the markets' action.
Jeanine Poggi, editor at Ad Age, joined Cheddar News to discuss the commercials slated to make their marks during the Super Bowl.
Cheddar News dived into its Stock of the Week, which is Uber, which topped estimates for its latest earnings report.
Average babysitting rates are skyrocketing, according to a survey.
