Adidas Warns of More Profit Damage Due to Unsold Yeezy Inventory

Adidas AG ADDYY said the unsold Yeezy inventory would lower revenues by around € 1.2 billion and operating profit by around € 500 million in 2023.
Against this background, Adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023.
The company's underlying operating profit is projected to be around the break-even level.
In addition, Adidas expects one-off costs of up to € 200 million in 2023 as a part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024.
If all the above projections are likely to come true, the company would expect to report an operating loss of € (700) million in 2023.
In reported terms, sales were up 6% to € 22.51 billion in 2022.
The numbers speak for themselves. We are currently not performing the way we should", said Adidas CEO Bjørn Gulden.
In November, Adidas said it would end the production of Yeezy-branded products and stop all payments to Kanye West and his companies in October 2022.
The split came after the rapper's antisemitic speech.
Related: Adidas Severs Ties With Kanye West Over Rapper's Antisemitic Remarks, Sees $247M Impact From Development In 2022
Price Action: ADDYY shares closed lower by 8.96% at $75.16 on Thursday.
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