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 latest jobs report is in, and once again it's looking good for workers: The U.S. economy added 223,000 jobs in December, and unemployment dropped to 3.5 percent from 3.6 percent.
Wall Street rallied amid hopes inflation may continue to cool and the Federal Reserve may ease up on its interest rate hikes following some mixed readings on the U.S. economy.
The U.S. Federal Trade Commission (FTC) has proposed a rule that would ban the practice of companies forcing workers to sign non-compete clauses in their contracts.
Chris Salgardo, founder and CEO at Atwater, joined Cheddar News to discuss how the company is making men's personal care mainstream. “I think that the simplicity of it is what's really resonated,” he said.
Thanh Nguyen, CEO, and co-founder of OpenComp, joined Cheddar News to discuss salary trends and how to negotiate a raise amid historically high inflation and recent data on compensation.
John Haar, managing director of Swan Private Client Services at Swan Bitcoin, joined Cheddar News to discuss the different forces which affected the price of the cryptocurrency in 2022.
