2023-05-05 09:15:09
Today, May 5, the German sportswear and footwear manufacturer Adidas introduced first quarter reporting. The company’s revenue during this period decreased by 0.5% to €5.27 billion. Adidas ended the quarter with a net loss of €30 million against a profit of €490 million a year earlier. Nevertheless, these results were better than analysts’ expectations, and Adidas shares rose after the publication of financial statements by almost 6%.
The company continues to suffer losses from a broken partnership with the Yeezy brand, created by American rapper Kanye West, now known as Ye. The partnership was terminated in October last year after a series of anti-Semitic statements by the musician, which were widely dispersed in the media and social networks. Adidas estimates the resulting loss for the quarter at €400 million. “Apparently, because of the success of Yeezy, Adidas felt too comfortable and was not looking for other growth drivers,” said Cedric Rossi, an analyst at investment company Bryan Garnier.
The breakup with Yeezy hit the U.S. market particularly hard, with Adidas sales in North America falling 20% in the quarter. Sales in China also decreased by 9%. As previously reported, Adidas is going to step up its promotion in this country by making the design of its clothes and shoes more local. Sales in Europe, the Middle East and Africa (EMEA) grew by 4% and in South America by 49%. As before, the company forecasts a loss for 2023 as a whole – the first annual loss in more than 30 years. Adidas CEO Bjorn Gulden said the company is facing a “difficult year with disappointing results.”
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