Adidas CEO Says the Company Needs a ‘Different Business Model than Nike’

Adidas’ newly minted CEO teased some new areas of focus for the German athletic brand, which is still reeling from the loss of its Yeezy business in October and other economic headwinds. The company on Friday reported first-quarter earnings that beat expectations. Still, revenues fell 1% to 5.27 billion euros (or $5.81 billion) in the first quarter. The loss of Yeezy business caused a nearly 400 million euros, or $441 million, sales hit to the company in the quarter. CEO Bjørn Gulden, who joined Adidas in January, warned of a “bumpy year” with “disappointing numbers” ahead. He sees 2023 as a transition year meant to set up the company for growth in 2024 and beyond. He also discussed broad goals for how Adidas should think about growth, calling out the company’s no. 1 competitor, Nike. “I do think that we need to have a different business model than Nike,” Gulden said, explaining how Nike’s connection to “American street culture” makes sense for the Swoosh, given its global headquarters in the U.S. “We need to do it in a different way.” Previously, the Yeezy brand was one of Adidas’ strongest connection to pulse of American culture. Now, Gulden said Adidas will need to focus on

Follow Footwear News on Twitter or become a fan on Facebook.

from Footwear NewsFootwear News https://ift.tt/QNDdgBX