Bad times for Adidas. The German brand announced, via a statement from its new CEO, Bjorn Gulden, its first operating losses in thirty-one years. And his break with rapper Kanye West is not for nothing.
“The sports equipment manufacturer issued its fourth profit warning since July at the close of the stock market, warning investors that it might end its financial year with operating losses of 700 million euros if it did not succeed. to resell its stocks of Yeezy sneakers”, writes the economic newspaper Financial Times.
These futuristic-style shoes were the result of a collaboration between Adidas and the Chicago-born artist. But following several anti-Semitic remarks made by the latter having caused an international outcry, the brand had ceased all collaboration with him in October 2022.
“An internal assessment to determine what to do with unsold Yeezys is still ongoing, Adidas says,” continues the British title, which adds that the group might “lose this year some 1.2 billion euros in turnover, and 500 million euros in operating profits”.
“The numbers speak for themselves. We don’t have the results we should have”, adds Bjorn Gulden.
The only small rejoicing for the group, the Adidas action has risen 22% this year, but is still trading 50% below its level in the summer of 2021.
In addition to the controversy with Kanye West, Adidas also suffered from its decision to withdraw from Russia following the outbreak of war in Ukraine. The company will release detailed results for last year on March 8.
