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Adidas has posted its first loss in over 30 years following the financial fallout from abandoning its deal with rapper Kanye West.<\/p>\n
The sportswear giant reported a loss of \u00a350m (\u20ac58m) in 2023, compared to a \u00a3217m (\u20ac254m) profit the year before, as sales remained flat on a currency-neutral basis.<\/p>\n
Chief executive Bjorn Gulden said the group\u2019s performance last year was \u201cby far not good enough\u201d but the end of 2023 was \u201cbetter than what I had expected at the beginning of the year\u201d.<\/p>\n
Sales sunk 5% to \u00a318.3bn (\u20ac21.4bn), with the discontinuation of its Yeezy line contributing to a \u00a3427m (\u20ac500m) decline.<\/p>\n
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\nAdidas dropped West, who developed what became one of the retailer\u2019s most successful trainer ranges, in 2022 after the rapper made a series of anti-Semitic comments including on X \u2013 formerly Twitter \u2013 which said he intended to \u201cgo death con 3 on Jewish people\u201d.<\/p>\n
The company has been selling off its remaining stock from the Yeezy range in recent months and donating the proceeds towards anti-hate charities.<\/p>\n
Gulden said: \u201cDespite losing a lot of Yeezy revenue and a very conservative sell-in strategy, we managed to have flat revenues.<\/p>\n
\u201cWith a very disciplined go-to-market and buying process, we reduced our inventories by almost \u20ac1.5m. With the exception of the US, we now have healthy inventories everywhere.\u201d<\/p>\n
It said it expects sales to improve this year and is forecasting double-digit growth forecast in the second half due to the popularity for its classic styles including its Samba and Gazelle lines.<\/p>\n
The loss marks the first time Adidas has been in the red since 1992 when it was rocked by the death of Horst Dassler, part of the founding family, and his daughters chose to exit the company.<\/p>\n
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Adidas dropped West, who developed what became one of the retailer\u2019s most successful trainer ranges, in 2022 after the rapper made a series of anti-Semitic comments including on X \u2013 formerly Twitter \u2013 which said he intended to \u201cgo death con 3 on Jewish people\u201d.<\/p>\n
The company has been selling off its remaining stock from the Yeezy range in recent months and donating the proceeds towards anti-hate charities.<\/p>\n
Gulden said: \u201cDespite losing a lot of Yeezy revenue and a very conservative sell-in strategy, we managed to have flat revenues.<\/p>\n
\u201cWith a very disciplined go-to-market and buying process, we reduced our inventories by almost \u20ac1.5m. With the exception of the US, we now have healthy inventories everywhere.\u201d<\/p>\n
It said it expects sales to improve this year and is forecasting double-digit growth forecast in the second half due to the popularity for its classic styles including its Samba and Gazelle lines.<\/p>\n
The loss marks the first time Adidas has been in the red since 1992 when it was rocked by the death of Horst Dassler, part of the founding family, and his daughters chose to exit the company.<\/p>\n