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.
George Sakellaris, President & CEO at Ameresco, outlines how smart energy upgrades and performance contracts are cutting costs, CO₂, and boosting efficiency.
Seth Schachner, Managing Director at Strat Americas, breaks down Disney’s Q3 results: streaming profits, parks growth and ESPN rights deal with the NFL.
Kory Kantenga, Head of Economics Americas at LinkedIn, unpacks Friday’s jobs numbers, labor force trends, and signals of a potential economic deal with China.
Bret Kenwell, US Investment Analyst at eToro, joins us to break down tech earnings, what’s driving tech stock momentum, and what investors should watch next.
