Marketing And Auditing - London’s Post

Adidas terminated its contract with Kanye West due to his controversial statements but continues to sell his Yeezy sneakers. 😡🤔 On their website, they sell for over 100 euros, while on Amazon, prices range from 350 to over 1000 euros. 🤨😤 Kanye has urged his fans not to buy these products, stating he no longer has any connection with them. 😠😟 In January 2024, Adidas explained that these sales were of remaining stock. 😕🤷 However, even though the contract was terminated and Adidas disapproves of Kanye's statements, they continue selling his shoes, claiming it is to clear out inventory. 🤔🙄 Additionally, new models are still being released, despite stopping payments to Kanye in 2022. 😲😧 In summary, Adidas is profiting from Yeezy products without compensating Kanye for current sales. This appears inconsistent and raises ethical questions about Adidas's practices. 😠🤔 PS The post was translated into diplomatic English, but can you translate it into five layers of cursing - that's how I feel when I look at this situation. 😡😤 #kanyewest #adidas #whatshappin

🙏 Good news from the latest Adidas earnings call and thumbs up Bjorn Gulden Adidas has just reported overall better than expected financial results. While North America was their weakest market, they have seen strong growth in Europe and Asia. This is all good news for CEO Bjorn Gulden, who has stared down challenges like dealing with the Yeezy fallout (both Kanye and the shoe inventory) and losing the decades long partnership with the German national football team. In his tenure of just over a year, Bjorn has performed pretty well--or at least better than his competitors, which is one of the biggest things that matters in financial markets. Bjorn comes across better than Nike CEO John Donahoe, who has experienced more declining growth, layoffs, and generally poor PR in comparison. In the lifestyle shoe category, the Adidas Samba, Campus, and Gazelle are dominant global players. Depending on how you look at it, the Adidas Sambas are currently the most popular shoe in the world. As all businesses get increasingly more data driven, Adidas' ability to track the success of their shoes and their competitors' shoes will ensure they remain savvy with their decision making. https://lnkd.in/eex6qsaw #adidas #sneakers #footwear #shoes #retail #fashion #lifestyle #marketing

adidas, the renowned German sportswear giant, disclosed its first annual loss in over three decades in 2023, marking a notable downturn linked to its fallout with rapper Kanye West.   The brand has been navigating through challenges since severing ties with West in October 2022, including the suspension of sales for the profitable Yeezy sneaker line.   Under the leadership of CEO Bjorn Gulden, Adidas resumed selling Yeezy sneakers to clear remaining stock, while also focusing on popular products like the Samba and Gazelle shoes and improving relationships with retailers. Since Gulden's tenure, Adidas shares have rebounded, surpassing the performance of Nike and PUMA Group, and Adidas anticipates a recovery in its core business, excluding Yeezy, in 2024, with double-digit growth projected for the latter half of the year.   Adidas aims to reclaim market share from competitors like Nike, despite an overall decrease in demand for sportswear. The brand has found success with low-rise suede "terrace" sneakers such as the Samba and Gazelle, and has accordingly ramped up production. #AdidasLoss #KanyeWestFallout #YeezySuspension #AdidasRecovery #BjornGuldenLeadership #SportswearMarket #SneakerIndustry #AdidasPerformance #MarketShareRecovery #DoubleDigitGrowth

Adidas: The German Shoe Giant Posted Its First #Loss In 30 Years. After years in the black, sportswear giant #Adidas has gone red. The German company posted its first annual loss in over 3 decades as the full effects of its breakup with Kanye West and his valuable #Yeezy brand continue to hamper the #apparel behemoth. 

The company revealed a €14M net loss for 2023 — a far cry from the €638M net income it notched in 2022, and even further from the €2.2B (~$2.4B) that it achieved the year before. Weak #revenue in the U.S., its second biggest market, is driving the decline, with #sales slipping 16% in 2023 — a trend that the 74-year-old company expects to continue this year as it battles with a glut of #inventory.

When it cut ties with Kanye West in October 2022, Adidas still had some $1.3B worth of Yeezy shoes in its warehouses that it has slowly shifted over the last 15 months, donating some of the #profits to fight hate speech, and the company now finds itself in a transitional period.

Soccer-player-turned-CEO Bjørn Gulden, who spent nearly 10 years at the helm of rival #Puma, set out a pretty understated roadmap slogan, saying that Adidas should be a “good company” by 2025 and a “really healthy company” by 2026. Nonetheless, shares in Adidas are up 55% since #Gulden took the reins and implemented his #turnaround plan. JSesko@meridianfinance.com 818-914-9271 #tradecreditinsurance

✦ Beyond the Hype: Adidas, Kanye West, and financial transparency ✦   Year 2015. Adidas and the American rapper Kanye West decide to collaborate to create a pair of new groundbreaking sneakers. And so they did, under the name of Yeezys. Many of them priced above €250. Despite Adidas not denying the success of these sneakers, the brand has never disclosed specific results.   Year 2023. Adidas was compelled to announce losses of €1.2 billion in annual sales and €500 million in operating profits. This downturn was attributed to the termination of the company's Yeezy shoe line following racist comments made by the American rapper, marking Adidas' first annual loss in 31 years.   According to statements from the CEO, these figures are seen with the goal of making the company more profitable in the future.   Should brands like Adidas with Yeezys or Nike with Air Jordan show greater financial transparency? It seems that they do not for now, as this strategy allows them to conceal highly profitable business lines from competitors. This raises the question: How do shareholders assess these types of actions?   #sports #fashion #adidas #cashisking

adidas has announced further stock leftover from a cancelled partnership with Kanye West will be sold off in the coming weeks. A phased sell-off of the sportswear retailer’s remaining #YEEZY products began on Monday, Adidas said on Monday, with further online releases planned over the weeks ahead. “As announced at the start of 2024, Adidas will release the remaining YEEZY inventory, which features products from 2022, in the course of the year,” the company said. “The range available will include some of the most popular designs.” Such products remain unsold after Adidas and rapper West split in late 2022 over a series of anti-semitic comments made by the latter. Such sell-offs of YEEZY products since have buoyed earnings at Adidas after demand for the products, which were designed by West, has prevented the need for a hefty write-down on the stock. More at #Proactive #ProactiveInvestors #OTCQX #ADDYY http://ow.ly/ZZzA105jLP1

🚀 Adidas Faces First Annual Loss Since 1992 Amidst US Sales Dip Adidas reports its first annual loss in over three decades with a $63.4 million deficit for 2023, marking a challenging period for the sportswear giant amidst global macroeconomic challenges and geopolitical tensions. The termination of the lucrative Yeezy collaboration, previously a $2 billion yearly boon for Adidas, has been the most damaging. The Yeezy franchise, Adidas's sole point of cultural connection, had been propelling the brand, which now leaves the brand strategising for recovery amidst flat revenues and a significant inventory reduction. Adidas CEO Bjorn Gulden stated, “Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year.” I believe this was due to the trend of low-profile court shoes, which resulted in a high demand for Adidas Gazelles and Sambas, rescuing Adidas in what could have been a far worse year. It will be really interesting to see how Adidas navigates this turnaround beyond the retro court shoe trend, something they previously struggled to do. adidas | Adidas |

Today, the FT profiled adidas CEO Bjørn Gulden, giving a good overview that I would categorize as bullish for the company. -The Yeezy relationship is still the massive lingering hangover for adidas, filled with complex dynamics including what to do with inventory, controversy around how Bjørn responded to Kanye's comments, and yet persistent demand for Yeezy sneakers. -Financially, adidas is doing pretty well, which we'll better understand on their earnings call tomorrow: "The company, which was originally bracing for an annual loss of up to €700mn last year, is expected on Wednesday to confirm operating profit of €268mn." -adidas is much less aggressive on their DTC strategy vs. Nike, which makes sense because adidas doesn't have the same brand cache to insulate them from negative sentiment that comes from 3rd party retailers feeling left out. This strategy comes directly from Bjørn. -Some criticism of Bjørn's management style and cultural issues within adidas were highlighted as potential issues, in addition to broader financial challenges for the company to face in 2024. -While they mentioned adidas investment in Gazelles and Sambas, one thing I didn't see mentioned is the adidas Campus. From the data we've seen on the resale market and speaking to resellers/retailers, Campuses are in high demand and that's a valuable signal to better understand consumer preferences. -After reading this, my take is that the perceived malaise around adidas is overblown. The article helps position adidas as a company soaring on tailwinds while their biggest rival Nike seems to be struggling. Let's see what happens on their earnings call tomorrow! https://lnkd.in/eFxYhn5R #adidas #nike #sneakers #footwear #fashion #shoes #sneakerdesign #retail #apparel #sportswear

Cut the Cords: The Controversy of Kanye's Influence on Adidas Explore the contentious relationship between Kanye West and Adidas, as we delve into the Kyrie and Nike situation and dissect the impact of Yeezy on the renowned sneaker brand. Discover why cutting ties may not be as simple as it seems, and why Adidas continues to sell his sneakers. #KanyeAdidasControversy #YeezyInfluence #SneakerCulture #NikeKyrieControversy #AdidasRevival #InfluencerImpact #BrandPartnership #SneakerMarket #AdidasSales #FashionIndustry

You'd be forgiven for thinking adidas' announcement in the last few hours of its rethink and withdrawal of the #football shirts for the German national team bearing the number “44” in a font that looks much like the Nazi SS lettering was just a poorly conceived April Fool’s Day prank. Much like other #branding mistakes, it shows that #marketing campaign processes from this global sportswear leader lack the rigor to prevent brand damage and lost trust, not least from its target shoppers. This is the company’s second misstep in 18 months, still marred by its divorce from Kanye West and subsequent removal of the shoe ranges following his contentious antisemitic remarks. It seems the bigger the company, the more likely such basic marketing mistakes occur from the disconnected, complex silos across their international footprints and leaderships not sharing best (and worst) practices. What are some brand stories you know that have suffered similar foreign fails?