It was more expensive for Adidas to break off its relationship with Kanye West since Nike moved ahead of it.
The market share of the Just Do It brand is anticipated to increase in 2023 as a result of the shoemaker’s projected strong third-quarter revenue growth, which will be especially aided by the German sports giant’s staggering loss of about $600 million in quarterly sales as a result of severing ties with Ye.
“There is an opportunity for Nike to pick more market from Adidas,” said Jessica Ramirez, senior analyst at Jane Hali and Associates, to Reuters.
Adidas is already preparing for its first yearly operational loss of $736 million in three decades due to $527 million mountains of Yeezy stock that have not yet been sold.
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Following his anti-Semitic outbursts, the German sportswear manufacturer broke up their nine-year collaboration with the designer mogul.
The multi-billion company’s yearly revenue is anticipated to decline by $1.27 billion this year as a result of its lodestar withdrawal.
According to CNN, the German company’s chief financial officer, Harm Ohlmeyer, called it a “disappointing year” and acknowledged the significant impact West’s departure had on the business.
Before delivering the company’s operating profit, which fell by 66% year over year to $705 million, he added, “We obviously did not perform as we should have performed.
The CFO wants to use this year as an opportunity to learn from past errors and turn losses into gains moving forward.
“2023 will be a year of change to lay the groundwork for the company to once again be thriving and profitable.
“I have no doubt that we can restore Adidas’ glory over time. But like he indicated in the statement from last month, we need some time.