German sportswear maker Adidas expects operating profit to nearly double to about € 500 million this year after the company’s break-up with Kanye West and the discontinuation of its Yeezy business.
According to an unannounced preliminary results release, Adidas reported an operating profit of € 268 million in 2023, down from € 669 million the previous year but significantly above the € 100 million loss that CEO Bjorn Gulden had previously predicted.
Since taking over the position at the beginning of 2023, Gulden has led a recovery at the business that was damaged by its split from rapper West, also known as Ye, leaving Adidas with unsold Yeezy trainers valued at € 1.2 billion.
Adidas claimed that by choosing not to write off the majority of their Yeezy inventory for € 300 million, it was able to achieve a better-than-expected fourth quarter. Rather, it will offer the leftover merchandise at cost.
