Adidas AG shares slumped after the German shoemaker warned that it’s sitting on a €1.2 billion (R23 billion) pile of unsold merchandise after terminating its lucrative branding deal with rapper Ye. | News24_Business
The deal was cancelled in late October after the rapper made a series of antisemitic and racist remarks.Adidas AG shares slumped after the German shoemaker warned that it’s sitting on a €1.2 billion pile of unsold merchandise after terminating its lucrative branding deal with rapper Ye.
"It seems like the new CEO wants to set the bar low and take early action in 2023 to make the changes needed" to turn around the company, Cristina Fernandez, an analyst at Telsey Advisory Group, wrote by email. Gulden will also have to figure out whether Adidas can sell or repurpose Yeezy designs to customers without the brand name. It previously flagged that profit and revenue have been hurt by the damage from ending the lucrative line, whose shoes previously fetched hundreds of dollars.
"We need to put the pieces back together again," Gulden said."I am convinced that over time we will make Adidas shine again. But we need some time."
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