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Adidas climbs 6% after lowering 2023 loss forecast on strong Yeezy sales

A Fashion Week guest was spotted wearing red Adidas Easy shoes outside Paul & Joe during London Fashion Week September 2022 in London on September 17, 2022.

Jeremy Moeller / Contributor / Getty Images

German sportswear giant Adidas said on Monday it expects its operating loss to narrow significantly this year after better-than-expected early-quarter sales in its Easy stake, which it sold off after terminating its relationship with collections company Yee.

Adidas shares rose 6.3% at 10:22 BST Tuesday after the company announced that potential write-offs from its remaining inventory rose from €500 million to €400 million ($442.5 million) as the company lowered its 2023 operating loss forecast from €700 million to €450 million.

The company also reported that its underlying Adidas business performed slightly better, and said it still expects underlying operating profit to be near breakeven for the full year, excluding one-off gains related to Yeezy and the ongoing broad strategic review.

“If successful, future Yeezy drops will further improve the company’s performance,” Adidas said in a statement, referring to the release of more existing inventory.

Adidas ended the partnership The musician Ye, formerly known as Kanye West, dated him in October 2022 after he made a series of offensive and anti-Semitic comments. After weeks of online criticism, Adidas called Ye’s comments “unacceptable, hateful and dangerous” and announced that it would cease production of Yeezy-branded products, including footwear and clothing, and stop all payments to Ye and his company.

That left the question of what the company would do with its existing Yeezy shares.

Adidas announced in May that it would sell inventory and donate a “substantial amount” of the proceeds to organizations such as the Anti-Defamation League and the Philonise Keta Floyd Institute for Social Change.

Adidas signed a contract with In 2016, it produced and sold items for its Yeezy clothing line, and the brand has grown to generate nearly $2 billion annually, representing 10% of the company’s revenue. according to Morningstar analyst David Swartz.

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Adidas stock price.

Summarize this content to 100 words A Fashion Week guest was spotted wearing red Adidas Easy shoes outside Paul & Joe during London Fashion Week September 2022 in London on September 17, 2022.Jeremy Moeller / Contributor / Getty ImagesGerman sportswear giant Adidas said on Monday it expects its operating loss to narrow significantly this year after better-than-expected early-quarter sales in its Easy stake, which it sold off after terminating its relationship with collections company Yee.Adidas shares rose 6.3% at 10:22 BST Tuesday after the company announced that potential write-offs from its remaining inventory rose from €500 million to €400 million ($442.5 million) as the company lowered its 2023 operating loss forecast from €700 million to €450 million.The company also reported that its underlying Adidas business performed slightly better, and said it still expects underlying operating profit to be near breakeven for the full year, excluding one-off gains related to Yeezy and the ongoing broad strategic review.”If successful, future Yeezy drops will further improve the company’s performance,” Adidas said in a statement, referring to the release of more existing inventory.Adidas ended the partnership The musician Ye, formerly known as Kanye West, dated him in October 2022 after he made a series of offensive and anti-Semitic comments. After weeks of online criticism, Adidas called Ye’s comments “unacceptable, hateful and dangerous” and announced that it would cease production of Yeezy-branded products, including footwear and clothing, and stop all payments to Ye and his company. That left the question of what the company would do with its existing Yeezy shares.Adidas announced in May that it would sell inventory and donate a “substantial amount” of the proceeds to organizations such as the Anti-Defamation League and the Philonise Keta Floyd Institute for Social Change.Adidas signed a contract with In 2016, it produced and sold items for its Yeezy clothing line, and the brand has grown to generate nearly $2 billion annually, representing 10% of the company’s revenue. according to Morningstar analyst David Swartz.stock chart iconstock chart iconAdidas stock price.
https://www.cnbc.com/2023/07/25/adidas-up-6percent-after-trimming-2023-loss-forecast-on-strong-yeezy-sales.html Adidas climbs 6% after lowering 2023 loss forecast on strong Yeezy sales

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