Adidas has warned that it could suffer its first annual operating loss in more than three decades this year, mostly because it may have to write off the entire range of Yeezy-branded clothing and sneakers
The German sportswear maker said Wednesday that it would face an operating loss of €700 million this year— its first in 31 years — because of a potential €500 million hit related to unsold Yeezy stock, and the cost of a strategic review. Shares in Adidas\n \n fell 2.2% Wednesday morning after it published its 2022 results and outlook for 2023. The company broke off its lucrative nine-year partnership with Yeezy designer Ye, the rapper formerly known as Kanye West, in October.
Last week, John Mocadlo, chief executive of Impossible Kicks, a large online reseller of high-end sneakers and clothing, said demand for the shoes had surged 30% since around last October. Adidas could perform better this year if it “repurposes” some of its Yeezy products, the company said without elaborating. ‘Year of transition’ The gloomy outlook for Adidas follows what Chief Financial Officer Harm Ohlmeyer called a “disappointing year” for the German giant.
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