Adidas sees profits double as Kanye crisis fades


STORY: Adidas is recovering from its breakup with Kanye West.

The German sportswear giant parted ways with the rapper after he made anti-Semitic comments.

This cost him big sales of his Yeezy sneaker line.

But on Wednesday, the company said its profits were on the mend.

It forecasts a near doubling of operating profit to more than $542 million this year.

The company also made an unexpected preliminary announcement of last year’s numbers.

Operating profit in 2023 reached approximately $290 million.

That’s less than half the previous year’s figure, but much better than the $108 million loss previously forecast.

New CEO Bjorn Gulden, in office since the beginning of last year, is striving for a turnaround.

The breakup with Kanye left Adidas with a pile of unsellable shoes worth around $1.3 billion.

However, fourth-quarter earnings were supported by the decision not to completely delist the stock.

Instead, Adidas will sell the sneakers at cost, recouping hundreds of millions of dollars.


Source link

Scroll to Top