adidas sees US$746m loss in 2023

This is due to the “adverse impact” of the Yeezy write-off.

adidas expects a €700m, or approximately a US$746m, operating loss in 2023 as it plans not to sell the existing stock of Yeezy inventory.

“While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact of not selling the existing stock,” the company announced. 

This is projected to lower revenues by around €1.2b and operating profit by around €500m during the year. 

Read more: Yeezy termination drags adidas 2022 outlook

In this light, adidas expected currency-neutral sales to decline at a high-single-digit rate in 2023. The company’s underlying operating profit is projected to be around the break-even level. 

Moreover, the company expects one-off costs of up to €200m in 2023. 

“These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024,” adidas noted.