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.
Control of Disney's Orlando area theme parks may soon go to a board chosen by Governor Ron DeSantis. Republican lawmakers unveil the bill that would give Republicans authority over the state's largest employer.
Cheddar News breaks down the findings of Shipstation's Ecommerce Delivery Benchmark Report, including the latest shifts in consumer spending habits and how businesses can strategize for success.
Stocks closed higher on Wall Street after the head of the Federal Reserve signaled last week’s stunningly strong jobs report isn’t likely to change where interest rates are heading on its own, as some investors had feared.
Chatbots are all the rage since Microsoft-backed OpenAI launched ChatGPT late last year. Now other tech giants are rolling out their own contributions to the artificial intelligence space, with Google owner Alphabet on Tuesday announcing the launch of a chatbot service called Bard.
As fears of recession loom, the consumer price index up 6.5 percent and inflation at historic highs, funds that Americans saved during the COVID-19 pandemic are nearing depletion.
