RBA Set for September Rate Hike as Inflation Stays High 
Pi Network Price Holds $0.087 as Protocol 28 Mainnet Upgrade Nears 
Asian Stocks Fall as Oil Surge, Bond Yields and AI Concerns Hit Markets 
AMD Hits $1 Trillion as BofA Raises Price Target to $720 
Strategy Buys 1,665 Bitcoin as BTC Holdings Reach 847,666 
Gold Slides Below $4,300 as Oil Surge Fuels Fed Rate Hike Bets 
Nidec Shares Plunge on Report of $6.3 Billion Impairment Charge 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Oil Prices Jump Nearly 3% as Iran Holds Firm on Hormuz Conditions 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Morgan Stanley Raises TD Synnex Price Target to $359 on Strong AI Demand 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
RedotPay Completes Audits as Stablecoin Firm Advances U.S. IPO Plans 
U.S. Stock Futures Fall as Iran, Oil and AI Risks Rattle Markets 
BlackRock’s Rick Rieder Favors Bonds Over Stocks as Treasury Yields Surge 
UK Housebuilder Stocks Surge on New First-Time Buyer Loan Scheme 
TikTok Reaches $100 Million Alabama Settlement Over Child Safety Claims 
Add as a preferred source on Google
Adidas shares plunged by 12.6% late last week after issuing a warning that this could result in a big loss this year which would be the first time for the company in three decades. The company said that this event was triggered by its break-up with Kanye West.
According to Reuters, Adidas said that its inventory of West’s Yeezy brand could be completely crossed out and could lead to a $749 million loss this year. This is because the sneakers and sportswear under the brand have price tags of up to $700.
The German sportswear and sneaker maker further said that by not selling the stocks of Yeezy items alone, it would take a hit of €1.2 billion or a $1.3 billion revenue loss this year. Its operating profit will also plummet by around €500 million to break even.
"The numbers speak for themselves,” Adidas’ new chief executive officer, Bjorn Gulden, said in a statement. “We are currently not performing the way we should."
Adidas severed its ties with Kanye West following his antisemitic comments on social media. He was also involved in various controversies and with all the negative issues, the company made the decision to split up with the rapper.
Shortly after the split with West, the company said it will sell Yeezy’s clothing pieces and shoes under a new name. It will be rebranded but selling them under its own branding will save Adidas some $300 million in royalty payments and marketing fees. However, some business analysts said that this repurposing scheme will create problems.
“There really are no good options for this distressed brand that sat somewhere between prestige and luxury,” CNN Business quoted Strategic Resource Group’s retail expert and managing director, Burt Flickinger, as saying in a statement.
Finally, it was reported that at this time, Adidas is still trying to figure out what to do with all of its Yeezy inventory. If it fails to find a way to sell the products, it could suffer significant losses. Then again, the sneaker maker is already expecting a decline in its sales this year, at a high single-digit rate.
Photo by: Alex Haney/Unsplash
