{"id":146037,"date":"2023-02-10T08:00:00","date_gmt":"2023-02-10T00:00:00","guid":{"rendered":"https:\/\/www.mediaintel.asia\/?p=913507"},"modified":"2023-02-10T08:00:00","modified_gmt":"2023-02-10T00:00:00","slug":"adidas-could-take-e1-2bn-revenue-hit-if-it-writes-off-kanye-wests-yeezy-stock","status":"publish","type":"post","link":"https:\/\/www.chinalegalblog.com\/en\/2023\/02\/10\/adidas-could-take-e1-2bn-revenue-hit-if-it-writes-off-kanye-wests-yeezy-stock\/","title":{"rendered":"Adidas could take \u20ac1.2bn revenue hit if it writes off Kanye West\u2019s Yeezy stock"},"content":{"rendered":"
\"MediaIntel.Asia\"<\/a><\/div>\n

Adidas has warned that it could take a revenue hit of \u20ac1.2bn (\u00a31bn) and slump to a loss this year if it decides not to sell its remaining stock of products made in collaboration with Kanye West, after it cut ties with the rapper over his antisemitic comments.
\nThe German sportswear giant said its decision last year to end the partnership to produce the Yeezy range with West, now known as Ye, will hit operating profits by \u20ac500m in 2023.
\nShares in Adidas plunged 10% in early trading on Friday after it issued the profit warning \u2013 its fourth since July \u2013 and said it was still deciding whether it should \u201crepurpose\u201d any of the Yeezy products for sale.
\nKanye West was suspended from Instagram and Twitter over offensive posts. Photograph: Evan Agostini\/Invision\/AP
\nThe company said that if it decided to scrap all the stock then it would take a further \u20ac500m hit to operating profits.
\n\u201cThe numbers speak for themselves. We are currently not performing the way we should,\u201d said Bj\u00f8rn Gulden, the chief executive of Adidas, who joined the company last month. \u201c2023 will be a year of transition to set the base to again be a growing and profitable company.\u201d
\nThe sportswear company ended its relationship with West in October, after the artist was suspended from Instagram and Twitter over offensive posts. It said his actions were \u201cunacceptable, hateful and dangerous, and they violated the company\u2019s values of diversity and inclusion, mutual respect and fairness\u201d.
\nAdidas expects one-off costs of \u20ac200m this year as part of a strategic review the company is conducting to \u201creignite profitable growth\u201d from 2024.
\n\u201cWe need to put the pieces back together again but I am convinced that over time we will make Adidas shine again,\u201d said Gulden, who joined from rival Puma. \u201cBut we need some time.\u201d
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\nAdidas said its operating profit for 2022 fell to \u20ac669m, a two-thirds fall on the \u20ac2bn it made in 2021.
\nIn March, the company said it would close its stores and suspend online operations in Russia. Adidas has also been hit by China\u2019s strict Covid restrictions put in place to curb a new wave of the virus late last year.<\/p>\n

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Adidas has warned that it could take a revenue hit of \u20ac1.2bn (\u00a31bn) and slump to a loss this year if it decides not to sell its remaining stock of products made in collaboration with Kanye West, after it cut ties with the rapper over his antisemitic c…<\/p>\n","protected":false},"author":253,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113,194,249,106,465,1242,100],"tags":[10324,10315,7327,10452],"class_list":["post-146037","post","type-post","status-publish","format-standard","hentry","category-google","category-news-chinese-law","category-russia","category-search-engine","category-social-media","category-twitter","category-website","tag-covid-19","tag-media-intelligence","tag-revenue","tag-sportswear"],"_links":{"self":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/146037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/users\/253"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/comments?post=146037"}],"version-history":[{"count":2,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/146037\/revisions"}],"predecessor-version":[{"id":146041,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/146037\/revisions\/146041"}],"wp:attachment":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/media?parent=146037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/categories?post=146037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/tags?post=146037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}