13.4 C
March 30, 2023

Adidas shares plunge after warning about unsold Yeezys

By 2023, Adidas could lose 1.2 billion euros ($1.3 billion) in revenue if it cannot sell its existing Yeezy stock. Adidas shares fell 11% around 9 a.m. London time following the news. “The numbers speak for themselves. We are currently not performing the way we should,” Adidas CEO Bjorn Gulden said in a press release.

Adidas shares plunge after warning about unsold YeezysYeezy’s German sportswear partner sacked Ye, formerly Kanye West, after he made a series of antisemitic comments in October. It has already accounted for the “significant adverse impact” of not selling the inventory, the company said late Thursday.

Without shifting products, Adidas expects operating profit to decline by 500 million euros in 2023 and sales to decline by a high single-digit percentage. Adidas might no longer sell Yeezy products. Following the announcement, shares fell 11% on Friday morning.

Moreover, Adidas forecasts one-time costs of up to 200 million euros for 2023, resulting in a 700 million euro loss for the year. In 2022, Adidas’ revenues increased by 1%, based on unaudited figures, but its operating profit decreased from almost 2 billion euros in 2021 to 669 million euros.

Related posts

Global growth will slow to 1.9 percent in 2023, warn UN economists


Mubadala acquires US-based Dental Care Alliance


DP World and Maersk ink a long-term partnership at Jebel Ali


Twitter faces class-action lawsuit over short-notice layoffs


Indian delegation to COP27 to be led by Union Minister Bhupender Yadav


UAE telecom subscribers rise to 21.9 million by end of 2020