Adidas warns of first annual loss in three decades and cuts dividend after Ye split
Publishing timestamp: 2023-03-08 05:23:17
Summary
Adidas reported a big fourth-quarter loss and slashed its dividend after terminating its partnership with Kanye West's Yeezy brand in October. The company posted a fourth-quarter operating loss of €724m ($763m) and a net loss from continuing operations of €482m. Adidas is projecting a full-year operating loss of €700m in 2023, marking its first annual loss for 31 years. The estimate includes a hit of €500m in potential Yeezy inventory write-off and €200m in "one-off costs." The company said underlying operating profit will be "around break-even level," reflecting the loss of €1.2bn in potential sales from unsold Yeezy stock.
Sentiment: NEGATIVE
Keywords: adidas ag, business news, earnings, investment strategy, entertainment, apparel retail, retail industry, sports, markets,