Adidas earnings tank after Kanye West split

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Adidas is still investigating former employees’ allegations that Ye created a toxic work environment and that the sportswear company knew about his problematic behavior and failed to protect workers.

, forcing the German sportswear maker into a big loss at the end of last year and expectations of more pain ahead.

Destroying them could "raise sustainability issues," though some companies have offered recycling solutions, said Gulden, who was named CEO after the blowup over Ye’s remarks. Restitching them to hide the Yeezy brand so they could be sold "is not very honest, so it’s not an option," he added. If Adidas does decide to sell the shoes, "I can promise you that the people that have been hurt by this will also get something good out of it and get donations and proceeds in different ways, shapes or forms," the CEO said.

The Ye breakup cost 600 million euros in lost sales in the last three months of 2022, helping drive the company to a net loss of 513 million euros. The decline, also attributed to higher supply costs and slumping revenue in China, contrasts with profit of 213 million euros in the fourth quarter of 2021.More losses could be ahead, with the company forecasting a 500 million-euro hit to profit earnings this year if it decides not to repurpose the remaining Yeezy products in stock.

 

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I’m betting the overlords controlling West paid those employees to accuse Kanye of sh t he didn’t do.

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