Cultural Intelligence

πŸš€ Adidas Faces First Annual Loss Since 1992 Amidst US Sales Dip

Adidas reports its first annual loss since 1992, with a deficit of $63.4 million for 2023, reflecting a difficult period for the sportswear behemoth amid global economic and geopolitical challenges. The cessation of the profitable Yeezy collaboration, which previously contributed $2 billion annually to Adidas, has been particularly detrimental. The Yeezy line, once a pivotal cultural asset for Adidas, propelled the brand forward, leaving the company now searching for a new strategy in the face of stagnant sales and substantial inventory cuts. Adidas CEO Bjorn Gulden commented, β€œ2023 ended slightly better than expected at the start of the year, though it’s still far from satisfactory.” He attributed this to the rising popularity of low-profile court shoes, which led to increased demand for Adidas Gazelles and Sambas, mitigating what could have been a more severe downturn. It remains to be seen how Adidas will steer through this challenge, especially as they move beyond the retro court shoe trend, a shift they have previously found challenging.