The most recent earnings call revealed the German sportswear giant adidas‘ Q1 2023 results. According to the company reports, adidas still blames YEEZY for its downfall, namely its $448 million USD loss in the first quarter of this year.
No longer able to look to the adidas YEEZY line as a sustainable profit avenue, the sportsear giant is moving on to other ambassadorship and investments. The company appears to be betting big on Jerry Lorenzo and his upcoming Fear of God Athletics line with adidas. Following his debut Fear of God runway show hosted at the Hollywood Bowl in April, chief executive Bjørn Gulden confirmed the official release date for collection.
Lorenzo’s apparel collection comprises of apparel, lifestyle, sneakers as well as basketball footwear. The collection is slated to be worn by various adidas athlete ambassadors in the NBA. So far, Gulden has confirmed that the collection has been well-received by retail partners and could “commercially be a game-changer for adidas by 2024.”
While Gulden did reveal that “Q1 ended a little better than we had expected with flattish sales and a small operating profit of €60 million,” the company is still feeling the negative effects of the YEEZY partnership fall out. According to Business of Fashion in February, Gulden said, “there is no other Yeezy business out there in the market,” and the brand is not looking to replace it with a singular partnership. Fans will have to wait until the second half of 2023 for the release of Fear of God Athletics and adidas collaboration.
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