Adidas CEO Bjørn Gulden said in a press release: “The numbers speak for themselves. We are currently not operating the way we should.”
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adidas could lose around 1.2 billion euros ($1.3 billion) in revenue by 2023 if it couldn’t sell existing Yeezys.
German sportswear company cancel the partnership with rapper and fashion designer Ye, formerly known as Kanye West, the face of Yeezy, in October after he made a series of anti-Semitic comments.
The company said late Thursday that it was assessing what to do with the inventory, adding that it had taken into account the “significant adverse impact” of not selling products.
Operating profit would drop by around 500 million euros if the company didn’t ship products, and Adidas expects sales to drop at a high single-digit rate in 2023. Adidas may choose to write off the products. Yeezy left her.
Shares fell 9.5% Friday morning as traders reacted to the announcements.
The company also forecasts a one-time cost of up to €200 million, making Adidas’ worst-case scenario for the year a €700 million loss for 2023.
Adidas CEO Bjørn Gulden said in a press release: “The numbers speak for themselves. We are currently not operating the way we should.”
Adidas’ revenue grew 1% in 2022, based on untested numbers, while operating profit fell from nearly 2 billion euros in 2021 to 669 million euros in 2022.
