Adidas severing ties with Kanye West proved costlier for the brand, as its rival Nike raced ahead of it.
The Just Do It brand market share is expected to grow in 2023 after the shoemaker is slated to register strong growth in third-quarter revenue, particularly helped by the German sports giant staggering loss of about $600 million in quarterly sales after severing ties with Ye.
"There is an opportunity for Nike to pick more market from Adidas," said Jessica Ramirez, senior analyst at Jane Hali and Associates, to Reuters.
Meanwhile, Adidas is bracing for a first annual operating loss of $736 million in three decades because of $527 million mountains of unsold Kanye West's Yeezy stock.
The German sportswear maker ended their nine-years-long partnership with the fashion mogul after his anti-Semitic rants.
Following the multi-billion company's lodestar exit, its annual revenue is expected to slump by $1.27 billion this year.
As per CNN, Chief Financial Officer Harm Ohlmeyer also admitted the hard hit the company suffered from West's departure by calling it a "disappointing year" for the German giant.
"We definitely did not perform as we should have performed," he said before presenting the company declining operating profit by 66% year-over-year to $705 million.
The CFO hopes to make this year a lesson to learn from mistakes to turn losses into profits in the future.
"2023 will be a year of transition to set the base to again be a growing and profitable company.
"I am convinced that over time we will make Adidas shine again. But we need some time," he said in last month's statement.
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