Get All Access for $5/mo

Adidas Faces Possible $1.3 billion Revenue Loss Over Yeezy Stock CEO Bjørn Gulden says the athletic gear company is "not performing the way we should."

By Steve Huff

Matthew Sperzel | Getty Images

If it cannot sell its remaining Yeezy inventory, sportswear giant Adidas could lose up to $1.3 billion in revenue in 2023.

CNBC reports the company has faced tough times since parting ways with rapper Kanye West, now known as Ye, in October 2022 over anti-Semitic comments. Adidas previously accounted for the potential negative impact of not selling the product and is currently assessing what to do with the remaining stock.

According to analysts, failing to sell off Yeezys in 2023 could reduce operating profit by nearly $605 million. Additionally, sales are expected to drop at a high single-digit rate this year. As a result, Adidas may have to write off its remaining Yeezy inventory — incurring one-off costs of approximately $242 million. As a result, losses in 2023 could total roughly $750 million.

In response to the news, Adidas CEO Bjørn Gulden released a statement saying that the "numbers speak for themselves. We are currently not performing the way we should." The announcement immediately affected stocks, with Adidas' shares falling 9.5%.

This is another financial blow to Adidas's bottom line as it attempts to solve its Yeezy inventory challenge. It remains uncertain what will happen, but investors and analysts are watching to see if Adidas can turn things around.

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.