adidas extends its result forecast for 2023

German sports brand Adidas this month raised its operating profit forecast for 2023, with losses now expected to drop to 450 million euros, up from an earlier estimate of 700 million euros.

In a statement, the group attributed this improvement to the “positive effects” that began to be seen on the accounts after the sudden halt in production of Yeezy Zapatillas Desroladas with controversial rapper Kanye West.

Constantly, the stock of unsold shoes is slowly depleting, which is taking a huge toll on the finances. The amount of potential provisions for depreciation has been reduced to €100 million in value, up from the current €400 million added to adidas. In addition, adidas Group’s global sales grew “slightly better” than expected, according to the statement.

At the same time, the group reported an operating profit of 176 million euros in the second quarter, which is 55% lower than the same period last year, but higher than the first quarter result, which was only 60 million euros.

Sales denominated in euros during the period decreased by 5% to EUR 5340 million. However, according to Adidas, sales will be at the same level as the same period last year, regardless of variations in exchange types.

Sales of Kanye West’s Zapatillas, now known as Ye, have been halted since October following a series of inappropriate comments made by the star, who has been criticized for making anti-Semitic remarks.