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, “2023 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.
