The company has stated that it will attempt to restore its “brand heat” following the negative publicity around the end of its association with Kanye West.
Transitional Year For Adidas
After ending its Yeezy brand connection with Kanye West and seeing deep discounting, 2023 is shaping up to be “bumpy” for Adidas. To move extra inventory, CEO Bjrn Gulden has conceded to severe price cuts and the loss of the Yeezy brand. He said 2023 will be a “transitional” year for the company and that protecting the longevity of the Adidas brand is a top priority.
Gulden said the company was aiming to regain consumer interest in its product because of the “great performance” of its relationship with luxury label Gucci. In the fiscal quarter that ended on March 31, 2023, Adidas saw its operating profit drop by 82.6% year over year.