Business

Adidas Bails From Yeezy. Why that packs a punch.


Times are hard

Adidas

The German company has too much inventory and China’s sales fall. That was slashed guidance, and earnings were half of Wall Street expectations. Shares are down more than 60% this year. Last week, Adidas abruptly said it was suspending production and distribution of rapper Kanye West’s Yeezy clothing line — primarily sneakers — after he made anti-Semitic comments. Immediate success: 250 million euros ($246.4 million).

It got worse, said Wedbush analyst Tom Nikic, who saw another €350 million hit to net income in the ’23 financial year. Adidas doesn’t disclose Yeezy’s revenues, but Nikic estimates them as high as 9% of the company’s $23 billion in total revenue. He has downgraded his stock rating to Neutral from Outperform and his target to €102 from €130.

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button