The company posted a net loss of 39 million euros ($43 million) in the first quarter, compared with a profit of 482 million euros in the same period a year earlier.
The company’s operating profit was €60 million, down more than 85% from 2022, while sales were roughly flat at €5.28 billion.
Adidas ended its relationship with Kanye West in October after he made a series of anti-Semitic statements.
The company warned in February that it could incur an operating loss of up to 700 million euros this year if it decides to fully write off the value of the current “Yeezy” stock.
New Adidas Chairman Bjorn Golden said 2023 will be a “year of transition” and said in a statement: “We just need time. 2023 will be a bumpy year with disappointing numbers. Maximizing our financial results short term is not our current focus.”
But Golden faces a myriad of challenges to put the company in a better position. In addition to the spinoff from Kanye, the company needs to revive its business in the Chinese market, where it has been hit by prolonged COVID shutdowns. -19.
First-quarter sales in China and the United States were particularly weak, due to the discontinuation of the Yeezy line, but the company made gains in markets in Latin America and other parts of Europe. Asia and the Pacific.
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