Adidas says it's at risk of losing as much as 1 billion Euros, or $1.07 billion, in operating profits if it fails to successfully offload its inventory of Yeezy merchandise.
Ye's remarks have cost him business deals with virtually all other major brands with which he'd previously had relationships, including Gap, Balenciaga, Footlocker and TJ Maxx.forecast
that Adidas would be able to repurpose the Yeezy inventory if it was stripped of the Yeezy label, Adidas also warned Friday that it could decide to not do so — something that would result in the company's operating profit falling by an additional €500 million, or $533 million. The company expects one-off costs of as much as €200 million, or $213 million, no matter what, it said.
“The numbers speak for themselves. We are currently not performing the way we should,” said Adidas CEO Bjørn Gulden in a statement. “2023 will be a year of transition to set the base to again be a growing and profitable company." Shares in Adidas plummeted as much as 11% Friday in trading on the Frankfurt, Germany stock exchange.
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