Adidas hit with lawsuit from shareholders over Kanye West partnership

This decision had a considerable impact on Adidas’ financial performance and stock prices. The company’s stock fell by 45% since the beginning of the year, with an 11.5% drop to $138.50 a share on February 10, 2023, after Adidas issued a warning about potential revenue loss.

Yeezy accounted for approximately 10% of Adidas’ annual revenue last year, and terminating the deal resulted in a $246 million hit to its bottom line.

Adidas warned that it could lose around $1.3 billion in revenue in 2023 if it is unable to sell its existing Yeezy inventory, and operating profit would fall by about $535 million.

The company also forecast one-off costs of up to 200 million euros, leaving Adidas’ worst-case scenario for the year as a 700 million euro loss for 2023. Adidas CEO Bjørn Gulden acknowledged the company’s underperformance, stating, “The numbers speak for themselves…