German sportswear giant Adidas unveiled plans to slash its dividend on Wednesday, reiterating warnings the company could face its first annual loss in decades following the costly decision to split with rapper and designer Kanye West and scrap their lucrative joint brand, Yeezy.
- Adidas said it will propose an annual dividend of $0.74 (€0.70) per share at its annual general meeting on May 11.
- The proposed payout is down from $3.48 (€3.30) per share in 2021, a cut of nearly 80%.
- Adidas reported losses of $508 million (€482 million) for the fourth quarter of 2022, largely reflecting falling sales in China and the company’s split with West, also known as Ye, which it said cost it $632 million (€600 million) in sales.
- Adidas reiterated warnings the company is on track for its first full-year loss in decades, projecting losses of more than $700 million.
- The company said it stands to lose $527 million (€500 million) in 2023 if it cannot sell or repurpose Yeezy shoes left over from its partnership with West, which were estimated to bring in $1.26 billion (€1.2 billion) in revenue this year.
- CEO Bjørn Gulden said 2023 will be a “transition year” for Adidas to reinvigorate its core business and build a path to profitability in 2024.
https://www.forbes.com/sites/roberthart/2023/03/08/adidas-slashes-dividend-amid-fallout-from-kanye-west-breakup
https://www.adidas-group.com/en/media/news-archive/press-releases/2023/adidas-results-in-2022-reflect-geopolitical-macroeconomic-and-company-specific-challenges/
submitted by /u/magenta_placenta
[comments]
Source link
