Berlin, Germany – Adidas has announced a significant turnaround following its separation from rapper Kanye West, projecting profits of €700m (£598m) for 2024. The German sportswear giant had faced challenges after parting ways with West in 2022 due to controversial comments he made on social media. The company reported its first losses in 30 years last month but now expects a profitable year ahead.
Adidas revealed that it exceeded its initial predictions by €200m, attributing the positive change to a strong first quarter performance. With quarterly operating profits reaching €336m, a significant improvement from the previous year when the West collaboration ended, the company is optimistic about its future outlook. The sale of €150m worth of Yeezy products in the quarter also contributed to its financial success.
Despite the separation from West, Adidas remains a popular brand with a diverse fan base, including high-profile clients. Last year, the company pledged to donate a portion of Yeezy sales to charities combating hate, emphasizing its commitment to social responsibility. The remaining Yeezy stock is expected to bring in around €200m in revenue later this year, although without additional profits.
In the midst of its financial recovery, Adidas faced scrutiny when it was revealed that British Prime Minister Rishi Sunak had been a long-time customer of the brand. Sunak, known for his serious demeanor, issued a public apology for any associations with the brand that might be perceived negatively. Meanwhile, the company highlighted the impact of the Argentine peso devaluation on its financial results, citing challenges in its largest and fastest-growing market.
As Adidas navigates challenges and opportunities in the global market, its resilience and strategic decisions have positioned the company for a profitable year ahead. With a focus on innovation, social responsibility, and a diverse customer base, Adidas continues to adapt and thrive in a competitive industry.