Adidas cut dividend significantly

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In 2022, the group struggled with high inflation and problems in China. Also, collaboration with Kanye West was terminated due to, among other things, allegations of anti-Semitism against the rapper. Profit from continuing business therefore fell from around 1.5 billion to 254 million euros. The sporting goods manufacturer thus confirmed the preliminary figures it had previously submitted.

In the fourth quarter there was even a loss of 482 million euros, after a profit of 123 million euros a year earlier. With the end of the Yeezy partnership, Adidas lost nearly 600 million euros in sales, which totaled 5.2 billion euros, an increase of one percent. Currency-adjusted Adidas posted a minus one percent.

The Yeezy issue will also focus on the group this year. Adidas management reiterated their predictions in February. CEO Björn Gulden, who has left competitor Puma, expects currency-adjusted sales to fall in the high single-digit percentage range for this year.

A few weeks ago, Gulden was forced to issue a profit warning due to the loss of business with Yeezy products created in collaboration with scandalous rapper Kanye West. The operating result can be up to 700 million in red for the first time in decades.

While presenting the annual figures on Wednesday, Gülden said, “2023 will be a transition year to lay the foundations for 2024 and 2025.” said. The Norwegian replaced Kasper Rorsted as CEO at the beginning of the year.

(SDA)

Source :Blick