Adidas posted its first annual loss in more than three decades on Wednesday, and warned that US sales will drop this year as the German sportswear giant continues selling off its remaining Yeezy inventory.
For 2023, Adidas posted a $63.4 million net loss, its first since 1992․
In 2024, currency-neutral sales in North America are expected to decline to a mid-single-digit rate, around 5%, over “macroeconomic challenges and geopolitical tensions,” the company said in its earnings outlook.
Also this year, Adidas also said its “remaining Yeezy inventory assumed to be sold at cost.”
Adidas has already been putting its unsold Yeezy sneakers up for sale through its digital platforms in three separate drops in the wake of its failed collaboration with Kanye West, the rapper now known as “Ye.”
Adidas said that clearing its stock helped Adidas bring inventories down by $1.64 billion in 2023, a 24% decline.
The lucrative partnership — which generated Adidas an estimated $2 billion per year — fell apart in October 2022 after nine years. Still, the end of the Yeezy product line left the company with more than $1 billion of unsold shoes alone.
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