adidas Projected to Lose $1.29 Billion in Revenue After Kanye Axing
The well-documented fallout between adidas and Kanye West is costing the German Sportswear giant over $1 billion in earnings, an internal report suggests.
According to their current status across a number of areas, adidas is still in the process of reviewing future options for the utilization of their unsole Yeezy inventory, which has had a ‘significant adverse impact’ due to the unsold stock.
If they continue to hold the stock through 2023, it’s expected that revenues will be lowered by approximately €1.2 billion ($1.29 billion USD), while operating profits would take a €500 million ($537 million USD) hit this year. adidas also expects a one-off cost of up to €200 million in 2023 towards a strategic company review.
adidas CEO Bjørn Gulden has stated, ‘The numbers speak for themselves. We are currently not performing the way we should. 2023 will be a year of transition to set the base to again be a growing and profitable company.’
This newest comes a day after a Wall Street Journal report shows that Beyoncé’s IVY PARK label is underperforming to the tune of $200 million.