The German sports equipment manufacturer Adidas raised its operating profit forecast for 2023 on Monday, with a loss now expected reduced to 450 million euros, against 700 million euros anticipated so far. In a press release, the group explained this improvement by the “positive impact” that is beginning to be felt on the accounts following the abrupt cessation of production of the Yeezy sneakers developed with the controversial rapper Kanye West. In particular, the stock of unsold shoes, which weighed very heavily financially, is gradually being reduced. The volume of possible provisions for impairment has been reduced by 100 million euros in value, to 400 million euros now, Adidas added.
In addition, the Adidas group's overall sales evolved "a little better" than expected, he said in the statement. The group reported at the same time in the second quarter an operating profit of 176 million euros, admittedly down 55% over one year, but up compared to the result of the first quarter, which was only 60 million euros. Turnover in euros over the period fell over one year by 5% to 5.34 billion euros. However, excluding exchange rate developments, sales reached the same level as the same period last year, according to Adidas.
The halt since October in sales of Kanye West's sneakers, now known as Ye, came after a series of slip-ups by the celebrity, including being pinned for anti-Semitic remarks.