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 U.S. Treasury Department has changed the standard for what kind of electric vehicles qualify for a federal tax benefit under the Inflation Reduction Act.
As if there weren't enough streaming platforms to choose from, Paramount+ and Showtime are giving customers another option to consider.
Snap Inc. saw shares plummet in after-hours trading after reporting a loss in the latest quarter and forecasting lower first-quarter revenue.
Oatly has launched climate footprint labels on its products in North America.
Athletes are looking to get a competitive edge over their opponents through the use of technology as competition gets stiffer.
Boeing has officially bid farewell to its 747 jet, with the final one leaving the factory on Tuesday in Washington.
McDonald's saw increased customer traffic in the latest quarter, which drove results.
General Motors issued an upbeat forecast for 2023 after reporting strong quarterly results, citing high demand.
Vivian Tu, CEO and founder of Your Rich BFF Media, influencer and personal finance expert, joined Cheddar News to provide personal finance tips for millennials and Gen Z'ers to build wealth.
Labor officials are accusing Apple executives of rules intended to coerce employees, according to Bloomberg.
