Adidas Posts Rare Loss in 2023, Hit by Fallout with Ye and North America Woes

• Adidas posted a rare net loss of €58M in 2023, hurt by ending partnership with Ye/Kanye West and falling sales in North America • Severing ties with Ye led to lower sales of Yeezy products; Adidas selling remaining inventory and donating proceeds to anti-discrimination groups • Sales in North America fell over 16% as Adidas cut wholesale volumes to reduce excess inventory • Sales grew over 8% in China, Adidas' 3rd biggest market, and expects double-digit growth there in 2023 • Global footwear sales rose 4% but apparel fell 6%; operating profit dropped nearly 60% though expects tax burden to ease