Adidas Shares Tumble After Warning of Loss Over Yeezy Fallout
10 February 2023 - 7:39PM
Dow Jones News
By Cecilia Butini
Shares in German sportswear giant Adidas AG fell in early
trading on Friday after the company warned that it could post a
loss in 2023 if it fails to sell its inventory of Yeezy shoes, made
within a partnership with rapper Kanye West that was recently
terminated.
At 0806 GMT, shares traded 10% lower at EUR140.64.
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.
Analysts at Bryan Garnier say that even adjusted for these
effects, 2023 would have been a transition year for Adidas, shy of
consensus expectations. Chief Executive Bjorn Gulden said that the
company isn't performing the way it should, and that it will take
some time to steer it back to growth and profitability.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
February 10, 2023 03:24 ET (08:24 GMT)
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