Adidas has slumped to a rare annual loss, hit by the fallout from its costly break-up with rapper Ye, falling sales in North America and a huge tax bill.
The German sportswear giant posted a net loss of €58 million in its core business in 2023, as revenue was hurt by lower sales of Yeezy-branded clothing and sneakers, while its tax burden shot up. “We didn’t have a great year in 2023,” chief financial officer Harm Ohlmeyer told journalists Wednesday. Shares in Adidas fell almost 4% in early trade, before paring most of those losses by 9.40 a.m. ET.
Sales in North America — the company’s second-biggest market — declined more than 16% in 2023, partly because Adidas slashed sales to wholesalers in order to reduce their high levels of inventory. The company expects its sales in the region to fall again this year, by around 5%. “All European brands have a difficult time in the US compared to the American brands,” company CEO Bjørn Gulden told journalists.
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