Adidas stated it’ll suggest an annual dividend of $0.74, down from $3.48 per share in 2021, a minimize of almost 80%

German sportswear large Adidas unveiled plans to slash its dividend on Wednesday, reiterating warnings the corporate may face its first annual loss in a long time following the pricey choice to separate with rapper and designer Kanye West and scrap their profitable joint model, Yeezy.

Adidas stated it’ll suggest an annual dividend of $0.74 (€0.70) per share at its annual common assembly on Could 11. The proposed payout is down from $3.48 (€3.30) per share in 2021, a minimize of almost 80%. Adidas reported losses of $508 million (€482 million) for the fourth quarter of 2022, largely reflecting falling gross sales in China and the corporate’s cut up with West, also referred to as Ye, which it stated value it $632 million (€600 million) in gross sales. Adidas reiterated warnings the corporate is on observe for its first full-year loss in a long time, projecting losses of greater than $700 million. The corporate stated it stands to lose $527 million (€500 million) in 2023 if it can’t promote or repurpose Yeezy sneakers left over from its partnership with West, which had been estimated to herald $1.26 billion (€1.2 billion) in income this yr. CEO Bjørn Gulden stated 2023 will probably be a “transition yr” for Adidas to reinvigorate its core enterprise and construct a path to profitability in 2024.

https://www.forbes.com/websites/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/