The reason was the breakdown of cooperation between Adidas and the Yeezy brand of hip-hop singer Kanye West. The decision was made after the musician's scandalous behavior.
Adidas, the sporting goods manufacturer, has made a loss for the first time since 1992. They amounted to 14 million euros. Financial losses from continuing operations reached 58 million euros. This is stated in the financial report of the company for 2023.
At the same time in 2022 Adidas earned 638 million euros of net profit.
The reason for the losses last year was the breakdown of cooperation between Adidas and the brand Yeezy hip-hop singer Kanye West. The decision was made after the scandalous behavior of the musician.
Adidas is selling off the brand's remaining inventory at cost price.
The company plans to earn 500 million euros this year. The board of directors wants to maintain the dividend payment of 70 euro cents per share despite the losses.
In Russia, Adidas retail stores stopped working on March 14, 2022.
Earlier wrote that Kanye West caught Adidas in the sale of counterfeits.
By the way, the application for jogging Adidas Running stops working in Russia. Accounts of Russians will be deleted in March. The app is no longer available in the App Store and Google Play in Russia.