Adidas has lost money for the first time in 31 years. Analysts say that it is because of its breakup with hip-hop star Yeh (formerly known as Kanye West).
Adidas said in its earnings call that it had lost 58 million euros last year. It is the first time since 1992 that Adidas has posted an annual deficit. The second-largest market, sales in North America, fell 16% from 2022. This slump is attributed to the social stir caused by the Yeezy brand collaboration. The company had collaborated since 2013, but stopped signing contracts in October 2022 after Yee was effectively kicked out due to Jewish hatred and Nazi praise. Since then, it has been plagued by 1.2 billion euros worth of inventory disposal. However, Adidas expects double-digit growth in the second half of this year except for Yeezy. It expects sales growth in other global markets except the U.S., with double-digit growth in China.
SALLY LEE
US ASIA JOURNAL
