Adidas profit plummeted 83% in 2022 after breaking up with Kanye West

Adidas reported this Thursday that its net profit fell 83% in 2022 to 254 million euros (about 268 million dollars) in a difficult environment and after the end of the collaboration with the rapper Kanye West.

The October break with the American musician, who had made anti-Semitic comments, cost the sports brand a net loss of 482 million euros ($508 million) in the last quarter.

Only for the purpose of the production of the shoe line Yeezy of the artist, the German firm stopped entering 600 million euros (632 million dollars).

your new leader Bjorn Gulden announced that “2023 will be a year of transition” to begin “building a profitable model from 2024”.

In February, Adidas forecast zero operating income for 2023 at best and a negative balance of 700 million euros ($738 million) at worst.

How it evolves will depend in part on the group’s decision on what to do with the Yeezy line’s inventory of ready-made sneakers and apparel.

Failure to sell them may result in a loss of revenue of 1.2 billion euros ($1.3 billion), the group announced.

In its statement, the German brand stated that it continues to “evaluate various options for the future use of its Yeezy product inventory.”

Should the company irrevocably decide not to reuse any existing Yeezy products in the future,” it would have to write off all inventory, he added.