Adidas posts Q1 loss as Kanye split weighs

Agence France-Presse
Adidas posts Q1 loss as Kanye split weighs
This file combination of photos created on Oct. 25, 2022 shows Kanye West attending the 2020 Vanity Fair Oscar Party in Beverly Hills on Feb. 10, 2020 (L) and the logo of German sports equipment maker Adidas on a shop in Munich, southern Germany, on March 10, 2021. Adidas said on November 24, 2022 it was investigating claims against Kanye West after a report detailed alleged inappropriate behaviour, just weeks after the German sportswear giant ended its partnership with the rapper. US magazine Rolling Stone said former members of the team involved in "Yeezy" -- the successful product line designed with the rapper -- had released a letter alleging Adidas leaders were aware of the behaviour, which went on for years, but turned a blind eye.
AFP / Christof Stache, Jean-Baptiste Lacroix

FRANKFURT, Germany — Adidas reported Friday a hefty first-quarter loss as its split with the controversial US rapper Kanye West dragged down the German sportswear giant's bottom line.

The company booked a net loss of 39 million euros ($43 million) from January to March, compared to a profit of 482 million euros in the period a year earlier.  

Its operating profit came in at 60 million euros, a fall of more than 85 percent from a year earlier, while sales were almost flat at 5.28 billion euros.

However the company suffered 400 million euros in lost earnings related to ending the production and sale of its highly succesful Yeezy line, designed in collaboration with West. 

Adidas halted its tie-up with West -- now known as Ye -- in October after he made a series of anti-Semitic outbursts.

The company had announced in February that it could suffer an operating loss of as much as 700 million euros this year if decides to write off the value of its entire existing Yeezy inventory.

New Adidas boss Bjorn Gulden said 2023 would be a "transition year". 

"We just need some time. 2023 will be a bumpy year with disappointing numbers, where maximising our short-term financial results is not our goal," he said in a statement. 

But he faces myriad challenges in getting the company on a better footing. 

As well as the Kanye split, Gulden needs to revive Adidas's business in the key Chinese market, where it was hit by lengthy Covid lockdowns.

First-quarter sales fell in China and the United States, markets particularly affected by the discontinuation of the Yeezy line.

But there were gains in Latin America and other parts of the Asia-Pacific.

vuukle comment


  • Latest
  • Trending
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

or sign in with