Adidas prepares for first loss in three decades after Kanye West departure

• Adidas is preparing for its first year of operating loss due to the departure of Kanye West.
• The is revenue expected to decline by $1.27 billion.
• Harm Ohlmeyer acknowledged that West’s departure had a significant impact.

Due to mountains of Yeezy stock of Kanye West worth $527 million that has not yet been sold, Adidas is preparing for its first year operating loss of $736 million in three decades.

Following his anti-Semitic outbursts, the German sportswear manufacturer broke up their nine-year collaboration with the designer mogul.

The multi-billion company’s yearly revenue is anticipated to decline by $1.27 billion this year as a result of its lodestar withdrawal.

Harm Ohlmeyer, the chief financial officer, acknowledged that West’s departure had a significant impact on the business and referred to it as a “disappointing year” for the German conglomerate, according to an international news agency.

Before delivering the company’s operating profit, which fell by 66% year over year to $705 million, he added, “We definitely did not perform as we should have performed.”

The CFO wants to use this year as an opportunity to learn from past errors and turn losses into gains moving forward.

“2023 will be a year of transition to set the base to again be a growing and profitable company.

“I am convinced that over time we will make Adidas shine again. But we need some time,” he said in last month’s statement.

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