Losses continue to pile up for Adidas as they continue to endure the consequences of moving on from its once fruitful collaboration with Kanye West and his Yeezy brand.
After recently losing its lawsuit against Thom Browne, the fashion brand is now estimated to lose a significant amount in revenue this year.
A financial guidance report was released on February 9, 2023 and, to put it bluntly, things look grim.
Revenues for 2023 stands to be lowered by a staggering $1.4 billion USD and another $500 million USD in operating profit in the hopes of breaking even.
These numbers stem from the unsold Yeezy stock still in the brand's possession after the split. There had been previous interest in selling the remaining inventory of Yeezy shoes under an Adidas rebrand although it is unclear whether they will move ahead with the decision. In the event that the inventory is written off the company stands to lose another $500 million USD in operating profit.
“The numbers speak for themselves. We are currently not performing the way we should”, admitted Bjørn Gulden, the CEO of Adidas.
Comparatively speaking, in 2022 the company enjoyed 22, 511 million euros in sales (up 6% from 2021) and operating revenue of over $800 million USD.
For 2023 Adidas plans to reorganize and rebuild by "focus[ing] on the consumer, our athletes, our retail partners and our adidas employees." in the hopes of "putting the pieces back together again."
Cover Image: Adidas.com