In deep crisis, Adidas gives itself a year to bounce back

Adidas CEO Bjorn Gulden attends the company's annual news conference, in Herzogenaurach, Germany March 8, 2023. REUTERS - HEIKO BECKER

Text by: RFI Follow

1 min

Adidas has suffered heavy losses since the end of its lucrative collaboration with Kanye West, known as Ye, following the rapper's anti-Semitic remarks.

In 2022, over one year, the net profit of the sports equipment manufacturer fell by 83% to 254 million euros.

The last quarter of last year was particularly painful with a net loss of 482 million euros.

For the new boss of Adidas, Bjorn Gulden, the year 2023 is a year of transition, which should allow the brand to return to success in 2024, an Olympic year.

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After leading 10 years, Puma, Adidas competitor Bjorn Gulden, has one year to relaunch the Chinese market, close the rift with American rapper Kanye West and sell off all the abundant stocks in the world.

Last October, the cessation of sales of "Yeezy" sneakers linked to the American rapper resulted in 600 million euros in lost sales, and since then millions of pairs have been sleeping in warehouses waiting to find out if they will be sold or destroyed.

In the latter case, the shortfall could reach 1.2 billion euros.

, the group plans for 2023 at best a zero operating result, at worst a negative balance of 700 million euros. 

At the same time, Adidas must return to profits in China, the brand's largest market, where sales fell 36% last year, due to the health crisis, but also a consumer boycott following Adidas' position on the condition of the Uyghurs.

Other buoyant markets: Europe and North America, where sales are also falling due to inflation. 

Not enough to shake Mr. Gulden who says " 

 ".

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