ALBAWABA - After severing relations with Kanye West in October 2022 and halting sales of the immensely popular Yeezy shoe brand, according to Reuters, Adidas has been struggling to make rectifications, reporting the company's first yearly loss in over 30 years on Wednesday and announcing that North American sales will decline yet further due to excess inventory.
The German sportswear firm reported a $63 million net loss in its core business for 2023, with North American income falling 16% for the whole year and 21% in the last quarter of 2023. The company's income was negatively impacted by fewer sales of apparel and footwear bearing the Yeezy brand, while its tax bill increased.
The company suffered considerably when it stopped selling the highly sought-after Yeezy shoe brand; however, it eventually returned to selling again in order to clear off the remaining Yeezy inventory. “We didn’t have a great year in 2023,” Chief Financial Officer Harm Ohlmeyer said to reporters on Wednesday.
Adidas Yeezy Boost 350 V2 Carbon Beluga shoes on black background (Shutterstock)
Adidas generated a profit of 300 million euros last year on the sale of Yeezy, bringing in a total of 750 million euros in revenue. The business designated 140 million euros for contributions to organizations that combat discrimination and antisemitism.
Adidas’ CEO, Bjorn Gulden, who since came in control Adidas shares have recovered, beating those of Nike and Puma as he aimed to strengthen ties with retailers and promote prominent products like Samba and Gazelle sneakers, commented that “although by far not good enough, 2023 ended better than what I had expected at the beginning of the year,”
Despite a net loss of 58 million euros, the company's first since 1992, the board of directors plans to recommend an unaltered dividend of 0.70 euros per share based on its 2023 performance.
