Despite this financial comeback, Adidas still plans to cut hundreds of jobs at its headquarters in Herzogenaurach, Bavaria.
In October 2022, Adidas severed ties with Ye due to a series of his public comments that were deemed as both racist and antisemitic. This split led to a major hit to the revenues generated by their collaboration on “Yeezy” sneakers, contributing to a net loss of €58 million in 2023 – Adidas’ first negative result in three decades.
Now, a year later, Adidas reports an 11% increase in revenue to approximately €23.7 billion and a net profit of €832 million.
“We aim to be number one in every market worldwide, possibly except the United States,” stated the CEO Björn Gulden.
Adidas Confirms Job cuts Despite Profitability
Despite the positive turn in business, Adidas confirmed plans to lay off up to 500 employees at its German headquarters. The CEO explained that this step is necessary to reduce operational complexity and decision-making processes that were previously handled in Bavaria.
Impact in the US from the End of ‘Yeezy’ Line
The discontinuation of the “Yeezy” product line has disproportionately affected Adidas in the United States, where sales remain down 2% this year, mainly due to the absence of “Yeezy” sneaker sales. In its last fiscal year, Adidas had generated €750 million from “Yeezy” sales while earning an operating profit of €300 million. The liquidation of the remaining inventory brought in around €200 million in 2024, much of which was donated to organizations fighting against antisemitism.
Adidas Aims for Market Leadership Over Nike
Following legal battles about the end of the partnership with Ye, Adidas no longer has any financial obligations to him. Adidas is now keen to strengthen its market position against its rival, Nike. The figures show that Adidas slightly increased its market share from 8.2% to 8.9%, while Nike saw its share slip from 15.1% to 14.2%.
Despite the profit return and strategic efforts, the stock market remains skeptical about Adidas’ future, reflecting a decline of 3.5% to 3.9% in share prices on the DAX stock exchange.
Edited by: Sean Sinico
