Adidas has struggled to find its feet after cutting ties with rapper West in October 2022, halting sales of its highly profitable Yeezy shoe line, according to Reuters.
In his first year as CEO of Adidas (from January 2023), Mr. Gulden continued to sell Yeezy shoes to clear inventory, while also looking to promote popular products such as the Samba and Gazelle shoes, as well as improve relationships with retailers.
Adidas CEO Bjorn Gulden during an interview at Adidas headquarters in Herzogenaurach (Germany) on November 20, 2023
Adidas shares have rebounded, outperforming Nike and Puma since he took over. “While it’s still not good enough, 2023 has ended up being better than I expected at the beginning of the year,” Gulden said.
Adidas said it expects its underlying business, excluding Yeezy, to improve this year, with double-digit growth in the second half.
Adidas said its board would propose a dividend of 0.70 euros ($0.70) per share based on its 2023 performance, unchanged from a year earlier, despite reporting a net loss of 58 million euros, its first since 1992, Reuters reported.
Adidas sees sales in North America falling this year because the market there remains overstocked, while sales in all other markets are expected to grow "significantly."
Adidas is betting it can regain market share from Nike and others even as demand for sportswear overall is plunging, according to Reuters.
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