Adidas Stock Drops Over the news of Yeezy Fallout!
Adidas shares fell sharply on Friday!
The German sportswear giant warned it could post a loss in 2023 if it fails to sell its inventory of Yeezy shoes, which were made through a partnership with rapper Kanye West that was recently terminated.
Shares were recently down about 12%.
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Adidas said it expects sales to fall at a high single-digit rate in currency-neutral terms because of the significant adverse impact of not selling the existing stock of shoes.
The potential operating loss would be 700 million euros ($752 million), Adidas said.#ADIDAS #yeezy pic.twitter.com/M985dFAgWE— The_Journalbiz (@the_journalbiz) February 10, 2023
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Adidas said it expects sales to fall at a high single-digit rate in currency-neutral terms because of the significant adverse impact of not selling the existing stock of shoes.
The potential operating loss would be 700 million euros ($752 million), Adidas said.
Chief Executive Bjorn Gulden also said the company isn’t performing the way it should, and that it will take some time to steer it back to growth and profitability.
Adidas AG shares are tagged as ‘bearish’ on the market following the termination of its Yeezy partnership with Kanye West
