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Adidas profit falls 83% in 2022 after breaking up with Kanye West | ECONOMY

adidas reported on Thursday that its net profit fell 83% in 2022 to 254 million euros ($268 million) in a difficult environment and after the end of the collaboration with the rapper. Kanye West.

The October break with the American musician, who had made anti-Semitic comments, cost the sports brand a net loss of 482 million euros ($508 million) in the last quarter.

Just for the purpose of producing the artist’s line of Yeezy sneakers, the German firm stopped earning 600 million euros (US$632 million).

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your new leader Bjorn Gulden announced that “2023 will be a year of transition” to start “build a profitable model from 2024″.

In February, adidas It forecast zero operating income for 2023 at best and a negative balance of 700 million euros ($738 million) at worst.

How it evolves will depend in part on the group’s decision on what to do with the Yeezy line’s inventory of ready-made sneakers and apparel.

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Failure to sell them may result in a loss of revenue of 1.2 billion euros ($1.3 billion), the group announced.

In its statement, the German brand stated that it continues “evaluating various options for the future use of your product inventory yeezy”.

In the event that the company irrevocably decided not to reuse any of the products yeezy existing in the future”, he would have to write off all the inventory, he added.

Source: AFP

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