4.6 C
New York
Tuesday, March 19, 2024

Adidas Expecting First Annual Loss in Over 30 Years Due to Kanye West Fallout

Date:

Share post:

German sportswear giant, Adidas reported a substantial fourth-quarter 2022 sales loss of $763 million and a stunning projection for 2023, following its split from Kanye West.

The brand expects a total operating loss of $738 million this year, its first annual loss in 31 years ago, according to CNBC.

This decline of Adidas is due to the end of it’s  relationship with Kanye West in October 2022. After a series of anti-Semitic comments, Adidas parted ways with West and canceled its Yeezy clothing line. That reportedly left them with a $1.3 billion Yeezy stash.Adidas Expecting First Annual Loss in Over 30 Years Due to Kanye West Fallout

Also, read; Metro Boomin Sells Portion Of Music Publishing Catalog For Approximately $70M

On the earnings call, CEO Bjorn Golden, who took over in January after leaving the same role at Puma, prepared the reports. Talk about how the company is negotiating between a few different options regarding the handling of its remaining Yeezy sneakers.

Whether it’s a profit-free sale in the original retail store, an immediate gift, or destruction, every decision has its advantages and disadvantages.Adidas Expecting First Annual Loss in Over 30 Years Due to Kanye West Fallout

Selling would damage their reputation, a donation would propel them to the resale market rather than the less fortunate, and shredding/burning would raise sustainability concerns.

However, in terms of revenue, Golden has confirmed that 2023 will be the year of re-stabilization after Yeezy and the days of 2024 will be much better.

Given the turmoil that led to the loss of revenue, Golden took an honest look at the past few months and the entire Yeezy era. As they wait to solve their problems, it’s still hard to forget what could have been.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Related articles

Jenifer Lewis Expresses Gratitude to Kenyan Hospital Staff Following Traumatic Fall

Renowned US actress Jenifer Lewis, famed for her role in the comedy series Black-ish, recently opened up about...

Dexter Scott King, Son of Martin Luther King Jr., Passes Away at 62

Dexter Scott King, the son of the legendary civil rights leader Martin Luther King Jr., has passed away...

7 Surprising Facts About Martin Luther King Jr. As We Celebrate His Legacy

As we commemorate Martin Luther King Jr. Day, it's an opportune moment to delve beyond the familiar narratives...

High School Coach Fired After Organizing Christian Baptism Ceremony for High School Players

Despite the controversy, some parents, including Latifa Johnson, expressed support for Ferrell's decision to allow the baptism and regarded him as a positive role model for their children.