{ "id": 1182, "date": "2024-03-22T09:00:07", "date_gmt": "2024-03-22T09:00:07", "guid": { "rendered": "https:\/\/fgnconsulting.com\/?p=1182" }, "modified": "2024-08-12T08:47:00", "modified_gmt": "2024-08-12T08:47:00", "slug": "adidas-at-a-loss-for-the-first-time-in-30-years", "status": "publish", "type": "post", "link": "https:\/\/fgnconsulting.com\/it\/2024\/03\/22\/adidas-at-a-loss-for-the-first-time-in-30-years\/", "title": { "rendered": "Adidas at a loss for the first time in 30 years" }, "content": { "rendered": "
\n
\"\"<\/figure>
\n

Adidas, the German sportswear giant, recently announced its financial results for 2023, marking a historic moment for the company: for the first time in over three decades, it ended the year with a loss. <\/p>\n<\/div><\/div>\n\n

<\/p>\n\n

An historic result<\/h2>\n\n

In 2023, Adidas recorded a loss of EUR 58 million, an event that had not occurred since 1992. This result surprised analysts and investors, considering the financial strength the company has demonstrated over the years. Sales, which stopped at EUR 21.4 billion compared to EUR 22.5 billion in 2022, fell by 5% year-on-year, marking a clear deviation from the previous growth trajectory.<\/p>\n\n

The causes of an unexpected loss<\/h2>\n\n

Fall in demand<\/h3>\n\n

The decline in demand for sportswear, especially in the US, played a crucial role in the financial results for 2023. This phenomenon reflected the broader challenges faced by the sportswear industry in adapting to changing consumer preferences and the global economic environment.<\/p>\n\n

End of collaboration with Kanye West<\/h3>\n\n

Another determining factor was the end of the collaboration with Kanye West, which had a major impact on the company’s finances. After the rapper’s controversial statements, Adidas stopped production of Yeezy shoes, which previously accounted for around 7% of annual sales. This decision not only deprived Adidas of a significant source of revenue but also caused an increase in storage costs for unsold products.<\/p>\n\n

The adidas response<\/h2>\n\n

The new CEO’s strategies<\/h3>\n\n

Bj\u00f8rn Gulden, who took office as CEO in 2023, has taken several measures to turn the company’s fortunes around. These include the decision to resume sales of existing Yeezy products to reduce inventory costs and actively promote sales of other shoe models, such as the Samba and Gazelle, which have been positively received by the market.<\/p>\n\n

Results in Different Markets<\/h3>\n\n

While in the US Adidas recorded a 16% drop in sales, in China the company saw an 8% increase. This dichotomy highlights the challenges and opportunities Adidas faces in different global markets.<\/p>\n\n

In Europe and the US, there is a noticeable decrease in consumer hunger for sporting goods. In fact, all brands operating in the sector are having some difficulties, including even NIke, which announced in February a 2% job cut.<\/p>\n\n

Conclusion<\/h2>\n\n

2023 was a difficult year for Adidas, which faced significant losses for the first time in three decades. The end of the partnership with Kanye West and falling demand in the US weighed on the financial results. However, the strategies adopted by new CEO Bj\u00f8rn Gulden suggest a path to recovery, demonstrating Adidas’ resilience and adaptability in the face of adversity.<\/p>\n\n

If you found this article interesting, please visit our blog<\/a> or our instagram<\/a> page.<\/p>\n\n

FGN is your guide in the financial and investment world, to safeguard your portfolio and avoid the erosion of your savings<\/strong>.<\/p>\n<\/div>", "protected": false }, "excerpt": { "rendered": "

In 2023, Adidas recorded a loss of EUR 58 million, marking the first year in the red in more than three decades. This result was influenced by a drop in demand for sportswear in the US and the end of the collaboration with Kanye West, which had a significant impact on sales and costs<\/p>", "protected": false }, "author": 1, "featured_media": 988348, "comment_status": "open", "ping_status": "open", "sticky": false, "template": "", "format": "standard", "meta": { "om_disable_all_campaigns": false, "_monsterinsights_skip_tracking": false, "footnotes": "" }, "categories": [ 62, 66 ], "tags": [], "class_list": [ "post-1182", "post", "type-post", "status-publish", "format-standard", "has-post-thumbnail", "hentry", "category-blog-2", "category-english" ], "aioseo_notices": [], "aioseo_head": "\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t