Retailer Expects $1.3bn Loss After Partnership Severance

  • Adidas reaches new agreement with Kanye West to sell remaining Yeezy stock
  • Sale will focus on existing shoe inventory, not clothing line or new designs
  • Adidas severed partnership with West in October due to controversies and anti-semitic comments
  • West also lost deals with Balenciaga and Gap
  • Retailer expects to lose $1.3bn as a result of dropping West
  • CEO Bjørn Gulden: ‘2023 will be a year of transition to become a growing, profitable company’
  • Adidas aims to improve product engine and employee experience

Adidas has reached a new agreement with Kanye West to sell the remaining $500m of Yeezy sneaker stock, focusing solely on existing shoe inventory and excluding his clothing line and new designs. This follows Adidas’ decision in October 2022 to sever its partnership with West due to controversies and anti-semitic comments, which also led to the loss of deals with Balenciaga and Gap. The company expects a $1.3bn loss as a direct result of dropping West. CEO Bjørn Gulden stated that 2023 will be a year of transition to become a growing and profitable company, focusing on consumers, athletes, retail partners, and employees.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the new agreement between Adidas and Kanye West, the focus on selling existing Yeezy sneaker stock, the reason for the partnership severance, and the CEO’s statement. However, it lacks some details about the exact terms of the contract and the impact on other aspects of Adidas’ business.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ new agreement with Kanye West and the impact of their previous partnership on the company’s performance, but it lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Adidas stock price and sales of Yeezy sneakers
Financial Rating Justification: The article discusses Adidas’ financial impact from its partnership with Kanye West, the sale of remaining Yeezy sneaker inventory, and the company’s plans for future growth and profitability.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article

Reported publicly: www.retailsector.co.uk