Adidas Posts Its First Loss In Three Decades

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Adidas Posts Its First Loss In Three Decades

Adidas (Addyy) Posts Its First Loss In Three Decades

In a shocking turn of events, Adidas (ADDYY) has posted one of its first losses ever in almost 30 years (3 decades). During the year 2023, the German sportswear company made a loss as Adidas's CEO is trying to make a turnaround after a messy end with the Kayne West partnership.

If we look back, Adidas' troubles started when it ended its partnership with West in October 2022. As a result, the company also had to stop selling its Yeezy sneaker line.

Yeezy Sneakers Affected Adidas's Revenue

What really effected the bottom line was that the said sneaker line was one of the most profitable products for the company.

As the new CEO took charge, one of his first priorities was to sell the remaining stock of the Yeezy in order to increase revenue. At the same time, the company also took several steps to improve the ales of Gazelle and Samba shoes. It seems that the CEO's efforts have shown results as the company's stocks have already outperformed Puma and Nike.

According to the CEO, the year 2023 was not good enough for Adidas. Despite the negative outcome, he added that it was still better than the forecasts at the start of 2023.

Adidas believes that its business (without counting Yeezy) will improve by a great deal in the year 2024. In fact, they are even citing double-digit growth during the 2H 2024.

Despite the loss in the year 2023, Adidas has still announced a dividend of around 0.70 euros. If we look back, the company offered a similar dividend a year before that as well.

Overall, Adidas's net loss during the year 2023 was around 58 million euros. The last time Adidas had a loss on a yearly basis was in 1992. Once the stock market opens, experts believe that around a 2% decline will likely take place in Adidas's stock.

Throughout the year, the sales in the North American region took a hit but Adidas blames it on the over-stocked market. The Adidas is still hopeful that its sales in the other markets will continue to grow at a good pace.

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