Adidas shares fall after conservative 2024 projections—But company plans to sell leftover Yeezys to buffer hit


Adidas shares slumped sharply Thursday morning after the company’s conservative projections for 2024 fell short of analyst expectations, as the company continues to deal with the fallout of severing ties with Kanye West.
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Adidas shares plummeted on Thursday after the company’s cautious projections for 2024.

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Key Takeaways
  • Adidas’ share price plunged nearly 9% after markets opened in Europe on Thursday, before settling at $178.5 (165.44)—down 6% from the previous day.
  • In its preliminary full year earnings report for 2023, the company projected an operating profit of roughly $540 million (€500 million) for 2024—less than half of analyst estimates of around $1.37 billion (€1.27 billion)—because of currency fluctuations in key markets.
  • The sportswear giant is attempting to soften the blow as it plans to sell its remaining inventory of Yeezy footwear, valued at around $324 million (€300 million), at cost, instead of writing it off, from which it expects to generate around $270 million.
  • For 2023, the company reported an operating profit of $289 million (€268 million)—sharply down from $772 million in 2022 but significantly better than the company’s previous forecast of a $108 million loss.
Big Number

$1.08 billion (€1 billion). That is the total hit on revenue the company says it faced in 2023, owing to unfavourable currency fluctuations, including a “severe impact from the devaluation of the Argentine Peso at the end of the year.” The company reported net sales of $23.1 billion in 2023.

Crucial Quote

During the company’s earnings call, Adidas CEO Bjorn Gulden referred to the cautious projections for 2024 as a “worst-case scenario” and said: “Everything we are saying is conservative.” Gulden added: “We’re trying to be humble, and down-to-earth, and then rather surprise you positively than negatively.”

Key Background

In 2022, Adidas joined several major brands in severing ties with Kanye West after the rapper made several antisemitic remarks on social media and interviews. West’s Yeezy-branded shoes were among Adidas’ most lucrative product lines and accounted for around $1.3 billion in revenues for the company in 2022.

The German sports apparel giant initially indicated it may be forced to write off its remaining Yeezy inventory, but the company moved to sell it off through drops on its website and app, resulting in $810 million (€750 million) in net sales last year. The company said the discontinuation of the partnership represented a $540 million drag on its revenue for 2023. West lost his Forbes billionaire status after Adidas snapped ties with the rapper. According to our estimates, his current net worth is $400 million.

This article was first published on and all figures are in USD.

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