Adidas Overcomes 'Kanye Shoes' Nightmare, Achieves Profit Turnaround

German sportswear company Adidas has shaken off the fallout from its failed collaboration with hip-hop star Ye and returned to profitability.

Yonhap News

On the 21st (local time), Adidas announced that its sales in the fourth quarter of last year increased by 24% in euro terms compared to the same period in 2023, reaching 5.965 billion euros (8.921 trillion won), with an operating profit of 57 million euros (85 billion won).

Adidas also expected its total sales for last year to increase by 11% from the previous year, recording an operating profit exceeding 1.3 billion euros (1.944 trillion won).

In the fourth quarter of 2023 alone, Adidas posted an operating loss of 377 million euros (564 billion won), and recorded a net loss of 58 million euros (87 billion won) for the entire year, marking its first deficit in 31 years.

Adidas faced a crisis after its collaboration with American hip-hop star Ye fell through. Adidas had collaborated with Ye's shoe and apparel brand Yeezy since 2013, but suspended the contract in October 2022 after he became embroiled in anti-Semitism controversies.

This content was produced with the assistance of AI translation services.