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.
America’s second most-hated chore is washing the dishes, according to Procter & Gamble, and to alleviate the stress of scrubbing, P&G invented Cascade Platinum Plus
Microsoft is reportedly looking to invest $10 billion in OpenAI, the parent company of ChatGPT, which would place the value of the company at $29 billion. Investors believe the new technology company could change the world as Google did.
Cheddar News went behind the scenes at P&G for an exclusive look at how its latest dishwasher pod was developed and tested.
Microsoft said it doesn't comment on rumors or speculation after Cheddar News asked for a comment about a report that the tech giant was in talks for a $10 billion investment in OpenAi.
Caleb Silver, editor-in-chief of Investopedia, joined Cheddar News to discuss playing the bond market, specifically corporate bonds and the risks involved.
Roger Cheng, executive editor of CNET, joined Cheddar News to discuss a Semafor report that Microsoft is in negotiations to invest $10 billion in OpenAI, parent company of ChatGPT.
Typhur unveiled its sous vide and GE shared its new mixer for smart kitchens at CES 2023.
Laurin Hahn, co-founder and CEO, and Torsten Keidel, CFO, both of German-based Sono Motors, joined Cheddar News to discuss the electric vehicle that the company is developing.
Calire Tassin, retail and e-commerce analyst at Morning Consult joined Cheddar News to discuss misses from retailers on Q4 earnings as well as Bed Bath & Beyonds rumored potential bankruptcy.
Ford, General Motors, Google Nest, and several energy companies are partnering to support the growth of "virtual power plants" (VPPs) .
