Adidas reports a loss for the first time in 30 years.

German giant Adidas has just announced its first loss-making year in over 30 years, so it will now place its hopes on the Chinese market.

For the first time since 1992, Adidas reported a loss of 58 million euros (63.4 million USD) last year. In 2022, the company achieved a net profit of 254 million euros (277.61 million USD).

The German sportswear company's business declined after they severed ties with star Kanye West in October 2022. Once highly profitable, the Yeezy sneaker line, a collaboration between the two, had to cease new production.

Adidas CEO Bjorn Gulden, while working to liquidate excess Yeezy inventory, sought to improve relationships with retailers. Capitalizing on the popularity of low-top sneakers, the company increased production of the Samba and Gazelle lines, boosting footwear sales by 8% in the fourth quarter, while apparel sales declined by 13%.

Products in an Adidas store in Garden City, New York, USA, October 25, 2022. Photo: Reuters

In Bjorn Gulden's first year as CEO, Adidas's stock recovered, outperforming Nike and Puma. "It's not good enough yet, but 2023 has ended better than I had hoped at the beginning of the year," Gulden said.

Thomas Joekel, investment director at Union Investment, believes Adidas has been on the right track since Bjorn Gulden took over as CEO. "The brand's appeal is increasing. This is also evident from the fact that there are now fewer products that need to be sold at discounted prices," he assessed.

Adidas expects its core business – excluding Yeezy – to improve this year, with growth of at least 10% in the second half. The company anticipates a stronger recovery in the Chinese market, with sales increasing by double digits after an 8% increase in 2023.

Conversely, the North American market is projected to continue weakening, with sales expected to decline by around 5% this year. Lower demand and high inventory levels have weighed on business there since last year. Adidas reported that sales in North America fell 21% in the fourth quarter and 16% for the entire year.

Phiên An ( according to Reuters )

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