Frankfurt, May 5, (dpa/GNA) – German sportswear giant Adidas moved into the red in the first quarter of 2023 compared to the same period of the previous year after it parted ways with controversial US rapper Kanye West and his Yeezy brand.
Adidas posted a first-quarter loss from continuing operations of €24 million ($26.5 million) compared to profit of €310 million in the previous year.
Loss per share from continuing operations was €0.18 compared to profit of €1.60. In euro terms, first-quarter revenues declined 1% to €5.27 billion.
Sales growth excluding Yeezy was 9%. Currency-neutral revenues were flat versus the prior-year level.
Adidas CEO Bjørn Gulden said: “2023 will be a bumpy year with disappointing numbers, where maximizing our short-term financial results is not our goal.
“It is a transition year to build a strong base for a better 2024 and a good 2025 and beyond.”
For the full year 2023, Adidas continues to expect currency-neutral revenues to decline at a high-single-digit rate.
The company’s underlying operating profit is projected to be around the breakeven level in 2023.
The company expects to report an operating loss of €700 million in 2023.
GNA