Projected Operating Loss of €700m in 2023 Amid Strategic Review
- Adidas expects revenues to drop €1.2bn due to Kanye West split
- Operating profit expected to drop €500m and reviewing options for Yeezy stock
- Currency-neutral sales decline at high-single-digit rate in 2023
- Underlying operating profit at break-even level
- Possible write-off of existing Yeezy inventory lowers profit by €500m
- Up to €200m in one-off costs in 2023 for strategic review
- CEO Bjørn Gulden: ‘We need some time, but Adidas will shine again’
- Focus on consumers, athletes, retail partners, and employees
Adidas has announced that its split with Kanye West will result in a revenue drop of at least €1.2bn, and the company’s operating profit is expected to decrease by €500m. The company is reviewing options for its existing Yeezy stock and expects currency-neutral sales to decline at a high-single-digit rate in 2023. Adidas is focusing on consumers, athletes, retail partners, and employees to improve and become profitable again.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Adidas’ financial expectations and the impact of its split with Kanye West on the company’s revenue and profit. It also includes a statement from the CEO addressing the situation and future plans.
Noise Level: 2
Noise Justification: The article provides relevant information about Adidas’ financial impact due to its split with Kanye West and the company’s plans for the future. It includes specific numbers and quotes from the CEO, offering insight into their strategy and expectations.
Financial Relevance: Yes
Financial Markets Impacted: Adidas’ stock price and other related companies in the footwear industry
Financial Rating Justification: The article discusses Adidas’ financial outlook and projected losses due to its split with Kanye West, which will impact their revenue, operating profit, and future growth. This information is relevant for investors and can affect the company’s stock price as well as other companies in the same industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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