Adidas Reports a $540M Loss , Due to Unsold Yeezy Products.
Adidas cut ties with Kanye West and his Yeezy line in October due to antisemitic comments made by the rapper.
Adidas cut ties with Kanye West and his Yeezy line in October due to antisemitic comments made by the rapper.
The inability to sell backstock, coupled with increasing
supply costs and declining revenue in China.
led Adidas to endure a net loss of $540 million in the fourth quarter of 2022.
NPR reports that if the company decides against repurposing the Yeezy products, it could lose over another $500 million this year.
Adidas says it's expecting an operating loss
of over $700,000,000 this year.
CEO Bjorn Gulden said 2023 will be
"a transition year" and "we can then start to build a profitable business again in 2024.".
Adidas will also be replacing top executives.
Roland Auschel, the company's global sales head of 33 years, will be replaced by Arthur Hoeld. .
Head of global brands Brian Grevy
will exit his role on March 31.
CEO Bjorn Gulden will handle his responsibilities for the time being