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☆ Nike outruns its competitors
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

Its challenges include unsold goods it has to shift, an 8% drop in year-on-year sales in China, and falling gross profit margins. Nike is nonetheless in a relatively enviable position. Nike is also sporting a five-year total shareholder return of 105%, where Adidas and Under Armour’s are both negative. Even with blips, that shows it has been a better long-term run for investors. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Nike said its apparel inventory fell in the third quarter and expects to end fiscal 2023 with "healthy" inventory levels. Sales in Greater China fell about 8% even as the country eased pandemic-related restrictions, which is expected to benefit the company in the near term. Nike now expects reported revenue for the full year to increase in the high-single-digit range, compared with its previous forecast of growth in the mid single digits. In the fourth quarter, the company expects flat to low-single-digit revenue growth, compared with estimates of a 2.42% rise, according to IBES data from Refinitiv. Nike posted revenue of $12.39 billion in the third quarter beating estimates of $11.47 billion and reported a profit of 79 cents per share above estimates of 55 cents.

March 20 (Reuters) - Nike is expected to report a rise in third-quarter revenue and grow its market share through 2023, helped by major rival Adidas' split with designer and rapper Kanye West that caused the German company to lose about $600 million in quarterly sales. Nike (NKE.N) is also expected to get a boost from higher sales of its Jordan Retros and some newer launches as the world's No. "There is an opportunity for Nike to pick more market from Adidas," said Jessica Ramirez, senior analyst at Jane Hali and Associates, adding that Adidas has not had as many bestsellers as Nike. Nike has also doubled down on its product lines such as the LeBron 20s and Nike Mercurial shoes, while also grabbing a bigger chunk of the growing China market. Still, Nike's margins are expected to be squeezed in the quarter as it continues to offer promotions and discounts to shed excess stock.

☆ Kanye West blunder puts Adidas in play
▼ + stars: | 2023-03-15 | by ( Aimee Donnellan | ) www.reuters.com time to read: +4 min

After a disastrous breakup with the musician formerly known as Kanye West, the $28 billion sneaker maker is slashing dividends and heading for the first loss in decades. Last year, Adidas spent 12.3% of its 22.5 billion euros of revenue on marketing and similar expenses. If it were to return to the 13.9% it allocated in 2015, it would add 2 billion euros of extra costs over the next five years, Breakingviews calculations show. Swooping on Adidas would allow the U.S. athleisure giant to dominate sportswear by servicing women and men across a wide spectrum of categories. Shares in Adidas were down 2.4% at 144.50 euros by 0859 GMT on March 15.

☆ Michael Jordan’s ‘Last Dance’ sneakers are being auctioned off. They could go for millions, and become the most expensive sneakers ever sold.
▼ + stars: | 2023-03-15 | by ( Aditi Bharade | ) www.businessinsider.com time to read: +2 min

Michael Jordan's sneakers from 1998 could sell for $4 million, breaking auction records. They are a pair of Air Jordan 13s Jordan wore in the last NBA finals he played for the Chicago Bulls. If sold at their estimated $4 million, they will set a record for the most expensive sneakers ever sold. The shoes are a pair of black and red Air Jordan 13s from Jordan's "Last Dance" — the last championship final Jordan played for the Bulls in 1998. If sold for their estimated price, the Air Jordan 13s will set the record for the most expensive sneakers ever sold, per CBS News, citing Sotheby's.

☆ Fox News' Brian Kilmeade praises Trump for being disciplined about not 'having lunch with white supremacists'
▼ + stars: | 2023-03-14 | by ( Sonam Sheth | Brent D. Griffiths | ) www.businessinsider.com time to read: +3 min

Fox News host Brian Kilmeade praised Trump for having a "very disciplined message." "Since he went and visited East Palestine, stopped having lunch with white supremacists, and has got a very disciplined message," Kilmeade said. He attributed that, in part, to Trump not "having lunch with white supremacists" and visiting East Palestine, Ohio, after a train carrying toxic chemicals derailed in the town last month. The reference to "white supremacists" is likely a nod to Trump's November meeting at his Mar-a-Lago resort with notorious white supremacist and Holocaust denier Nick Fuentes and the rapper Kanye West, who now goes by Ye. "This is the most disciplined I've ever seen him," Kilmeade said of Trump, "even compared to 2016."

☆ Nike is facing a PR nightmare as Kyrie Irving, Ja Morant, and now Tom Sachs face scandals – but experts say partnerships with celebs and athletes will never go away
▼ + stars: | 2023-03-14 | by ( Matthew Kish | ) www.businessinsider.com time to read: +8 min

Curbed published a blistering story about Tom Sachs, a Nike collaborator, this week. As long as companies have partnered with celebrities, some endorsement deals have run aground, said Coresight Research CEO and founder Deborah Weinswig. Longtime sportswear industry analyst Matt Powell, who recently founded Spurwink River, said endorsement deals are "fraught with peril." "I thought for a while that brands were moving away from real celebrity endorsements," he told Insider. "We're talking about a very, very small percentage of celebrities who get endorsement deals who have that halo effect," Herzog said.

☆ Wearable Clothes at Last? The Top Trends From the Fall 2023 Fashion Shows
▼ + stars: | 2023-03-11 | by ( Katharine K. Zarrella | Lizzy Wholley | ) www.wsj.com time to read: +1 min

LOW-KEY LUXURY At the fall fashion shows, many designers proposed quiet, classic clothes rife with sophistication. From left: fall looks from Fendi, the Row and Loro Piana. This season put an end to that. Perhaps inspired by political and economic uncertainty, or maybe by the fact that women exist in the tangible world again, not just behind filtered screens, brands including Saint Laurent, the Row, Bottega Veneta and Fendi turned out exquisitely wearable, sometimes understated clothes. The shift in tone resonated with guests, some of whom are cautiously optimistic it might last beyond this crucial season for the brand.

☆ Adidas has received over 500 offers for massive unsold Yeezy merchandise
▼ + stars: | 2023-03-10 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +3 min

New York CNN —Adidas has received hundreds of offers for the mountain of unsold Yeezy shoes designed by Ye, the artist formerly known as Kanye West. That represents a potential €500 million ($527 million) hit to the company’s bottom line. To his point, demand in the secondary resale market for Yeezy shoes is surging. Mocadlo said Impossible Kicks has about $2 million in Yeezy sneaker inventory currently, about 10,000 pairs. Prices for Yeezy sneakers are climbing due to tighter supply, according to StockX, a leading sneaker resale platform.

☆ Gap says it's getting rid of some managers as sales slide. One retail expert likens the company to a 'lazy student' unwilling to deliver a 'better performance.'
▼ + stars: | 2023-03-10 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

Gap announced Thursday that it's cutting back on managers to reduce costs. Meta and Twitter have also been cutting management jobs in recent weeks. Gap announced Thursday that it is cutting back on these workers to reduce costs and become more nimble. Neil Saunders of GlobalData Retail told clients this week: "Gap is rather like a lazy student that has the capability but completely lacks the capacity or will to put in the work to deliver a better performance." Gap did not immediately respond to a request for comment from Insider, made outside normal working hours.

☆ How this former Adidas executive is tackling the biggest problem in footwear with biodegradable sneakers
▼ + stars: | 2023-03-10 | by ( Matthew Kish | ) www.businessinsider.com time to read: +5 min

"It's a first of its kind," Liedtke told Insider. The Unless shoe, which retails for $139, was made in partnership with Natural Fiber Welding, which makes various materials from natural products, including plants and minerals. Jonathan Leibson/Getty Images for ADIDAS"This is a game changer," industry analyst and ARCH-USA founder Chris Burns previously told Insider. "What's unique about what Eric has done in the footwear industry is paid attention to every single component of the shoe," Natural Fiber Welding President Steve Zika previously told Insider. Last April, Natural Fiber Welding announced an $85 million Series B investment round.

☆ Elon Musk is reportedly planning to build a town for Texas staff, complete with a swimming pool, private compound, and school
▼ + stars: | 2023-03-09 | by ( Grace Kay | Sam Tabahriti | ) www.businessinsider.com time to read: +3 min

Elon Musk is planning to build his own town for SpaceX and The Boring Company staff. While Musk has overseen all purchases, Kanye West and the billionaire's ex-girlfriend, Grimes, also discussed the idea last year, the Journal reported. The town will be outfitted with a pool, an outdoor sports area, and a gym in addition to the prefabricated homes, the Journal reported. Spokespeople for SpaceX and The Boring Company did not respond to a request for comment from Insider. Do you work for The Boring Company, SpaceX, or have insight to share?

☆ Gap announces big loss, declining sales and executive shakeup
▼ + stars: | 2023-03-09 | by ( Gabrielle Fonrouge | ) www.cnbc.com time to read: +5 min

Gap reported sales of $4.24 billion, down 6% from $4.53 billion a year earlier. Online sales, which represent 41% of total net sales, plummeted 10% compared to last year, the company said. It expected first quarter net sales to decrease in the mid-single digit range compared to the prior fiscal year and expects fiscal 2023 net sales to decrease in the low to mid-single digit range. Overall, net sales for the year dropped to $15.62 billion compared to $16.67 billion in the prior fiscal year. Net losses for the year came in at $202 million, compared to a net income of $256 million in the prior fiscal year.

Gulden said Adidas was still deciding what to do with its stock of unsold Yeezy footwear. One option could be for Adidas to donate proceeds from the sale of repurposed Yeezy stock to charity, Gulden said. REUTERS/Shannon Stapleton 1 2 3The split cost Adidas 600 million euros ($632 million) in sales in the fourth quarter of 2022, and Yeezy shoes would have brought in an estimated $1.2 billion in revenue this year. Inventories came in at just under 6 billion euros at the end of December, up 49% from the previous year, including 400 million euros of Yeezy products. That, along with $200 million of one-off costs, would bring Adidas to a $700 million loss this year.

☆ Adidas Slashes Dividend as Problems Mount
▼ + stars: | 2023-03-08 | by ( Trefor Moss | ) www.wsj.com time to read: 1 min

Adidas said that revenues would decline by a single-digit percentage amount in 2023. HERZOGENAURACH, Germany—A slump in China and a $6 billion mountain of unsold products are among the challenges facing Adidas AG after a bruising 2022 in which it dumped its chief executive and ended a partnership with rapper Kanye West. The German sportswear giant’s revenue increased 6% last year to 22.5 billion euros, equivalent to $23.7 billion, while its net profit fell 83% to €254 million. For the fourth quarter, Adidas slumped to a €482 million loss and slashed its dividend. The results out Wednesday largely confirmed preliminary figures from the company’s profits warning in February.

☆ Adidas CEO promises turnaround after costly Yeezy split
▼ + stars: | 2023-03-08 | by ( Alexander Hübner | ) www.reuters.com time to read: +5 min

Gulden said Adidas is still deciding what to do with its stock of unsold Yeezy footwear. One option could be for Adidas to donate proceeds from the sale of repurposed Yeezy stock to charity, Gulden said. The split cost Adidas 600 million euros ($632 million) in sales in the fourth quarter of 2022, and Yeezy shoes would have brought in an estimated $1.2 billion in revenue this year. Inventories came in at just under 6 billion euros at the end of December, up 49% from the previous year, including 400 million euros of Yeezy products. In the fourth quarter of last year, currency-neutral revenue declined by 1%, taking into account a 600-million-euro loss after it stopped selling Yeezy shoes.

☆ Adidas to slash dividend after Kanye West split
▼ + stars: | 2023-03-08 | by ( Alexander Hübner | ) www.reuters.com time to read: +2 min

[1/3] Adidas merchandise is seen in an Adidas store on the day the German company terminated its partnership with the American rapper and designer Kanye West, now known as Ye, in Garden City, New York, U.S., October 25, 2022. REUTERS/Shannon StapletonBERLIN, March 8 (Reuters) - Adidas (ADSGn.DE) will slash its 2022 dividend, it said Wednesday, warning a split with rapper and fashion designer Kanye West could push it to its first annual loss in three decades this year. The company will recommend a dividend of 0.70 euros ($0.7374) per share at a May 11 annual general meeting, it said. Adidas is still dealing with the fallout from ending its partnership with West, which yielded the lucrative Yeezy sneaker line. Adidas said it is still deciding what to do with its stock of unsold Yeezy footwear.

☆ Adidas Profit Falls 83% After Split With Yeezy
▼ + stars: | 2023-03-08 | by ( Trefor Moss | ) www.wsj.com time to read: 1 min

Adidas said that revenue would decline by a single-digit percentage amount in 2023. HERZOGENAURACH, Germany— Adidas AG is facing a slump in China and $6 billion of unsold inventory, adding to its challenges after a bruising 2022 in which it dumped its chief executive and terminated its partnership with rapper Kanye West. The German sportswear maker’s revenue increased 6% last year to 22.5 billion euros, equivalent to $23.7 billion, while its net profit fell 83% to €254 million. In the fourth quarter, revenue growth almost ground to a halt and the company posted a €482 million loss. Adidas also slashed its dividend almost 80%.

☆ Yeezy fallout could push Adidas into its first annual loss in 31 years
▼ + stars: | 2023-03-08 | by ( Anna Cooban | ) edition.cnn.com time to read: +2 min

The company broke off its lucrative nine-year partnership with Yeezy designer Ye, the rapper formerly known as Kanye West, in October. The rupture knocked around €600 million ($633 million) off the company’s fourth-quarter revenue, Adidas said Wednesday. But the controversy has appeared to fuel demand for Yeezy sneakers through other sellers. Adidas could perform better this year if it “repurposes” some of its Yeezy products, the company said without elaborating. “2023 will be a year of transition to set the base to again be a growing and profitable company,” Chief Executive Officer Bjørn Gulden said in a statement last month.

☆ Adidas hasn't decided whether it's going to take a $526 million hit from not selling remaining Yeezys
▼ + stars: | 2023-03-08 | by ( Matthew Kish | ) www.businessinsider.com time to read: +3 min

Adidas split with Ye, formerly known as Kanye West, in October after he made antisemitic comments. On Wednesday, the company said it hasn't decided what to do with its remaining Yeezy inventory. But of late, the company's public statements seem to be leaning towards simply liquidating the remaining Yeezy inventory or destroying it. Regardless of what Gulden and Adidas decide to do with the remaining Yeezy inventory, it will likely be a challenging year. "There is no other Yeezy business in the market," he said.

☆ Adidas, burnt by Kanye West split, seeks a new focus
▼ + stars: | 2023-03-08 | by ( Helen Reid | ) www.reuters.com time to read: +4 min

[1/2] Adidas Yeezy shoes are seen in a store on the day Adidas terminated its partnership with the American rapper and designer Kanye West, now known as Ye, in Garden City, New York, U.S., October 25, 2022. Speaking to reporters on Wednesday, Gulden said Adidas would keep partnering not just with athletes but celebrities and artists. "You build credibility as a performance brand by being with athletes, but there's very few athletes that you can do lifestyle with." Gulden did, however, hint at a change of emphasis at Adidas, saying the company needs to refocus on its core. The Jordan brand brought in $5.1 billion of sales in Nike's 2022 fiscal year, up 7% from 2021, according to the company's 2022 annual report.

☆ Adidas warns of first annual loss in three decades and cuts dividend after Ye split
▼ + stars: | 2023-03-08 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

Adidas on Wednesday reported a big fourth-quarter loss and slashed its dividend after the costly termination of its partnership with Kanye West's Yeezy brand in October. The German sportswear giant posted a fourth-quarter operating loss of 724 million euros ( $763 million ) and a net loss from continuing operations of 482 million euros. Adidas is projecting a full-year operating loss of 700 million euros in 2023, marking its first annual loss for 31 years. The estimate includes a hit of 500 million euros in potential Yeezy inventory write-off and 200 million euros in "one-off costs." The company said underlying operating profit will be "around break-even level," reflecting the loss of 1.2 billion euros in potential sales from unsold Yeezy stock.

☆ Antisemitism and Israel: 13 Jewish Americans Discuss - The New York Times
▼ + stars: | 2023-03-07 | by ( Adrian J. Rivera | Allison Benedikt | Ms. Benedikt Is Opinion S Editorial Director. Mr. Rivera Is An Editorial Assistant In Opinion. | ) www.nytimes.com time to read: +2 min

When we first thought about convening a focus group of Jewish Americans, antisemitism was very much at the center of the national conversation. We wanted to understand how antisemitism was affecting American Jews whose daily lives did not necessarily intersect with these high-profile incidents. Many of the people we spoke to expressed fear about rising antisemitism, going so far as to hide their Jewish identities in certain circumstances. When we asked the group about Israel, few had specific thoughts on Israeli politics or policy. Almost all of the participants, however, expressed great pride in the country.

☆ Balenciaga spotlights craft at first runway show since ad controversy
▼ + stars: | 2023-03-05 | by ( Mimosa Spencer | ) www.reuters.com time to read: +1 min

PARIS, March 5 (Reuters) - French luxury group Kering's fashion house Balenciaga shifted the focus to fashion construction Sunday for its first catwalk show since a backlash from an advertising campaign last year. The label, which was criticised for a campaign featuring imagery of children, showed a lineup of distinctive tailoring, body-hugging silhouettes with hulking shoulders and full-length, glittering evening wear on a white-carpeted runway in Paris. "Being able to make this happen was a challenge that I knew I had to face," Balenciaga designer Demna Gvasalia, known as Demna, told journalists backstage after the show. "I wanted exactly to make it to be able to move on and do what I do best, which is making clothes," he said. The designer and Kering executives have apologized for an advertising campaign that drew criticism for featuring imagery of children that many considered inappropriate.

☆ Leonardo DiCaprio was interviewed by the FBI over his relationship with a Malaysian businessman involved with the 1MDB scandal, report says
▼ + stars: | 2023-03-03 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

Leonardo DiCaprio and Kim Kardashian were interviewed by the FBI in 2018 and 2019, Bloomberg reported. The stars had received gifts from Jho Low, who is accused of masterminding the 1MDB scandal. Earlier, DiCaprio had to return a number of gifts given to him by Low, including an Oscar won by Marlon Brando. On Thursday, Bloomberg revealed previously undisclosed documents which show the FBI interviewing DiCaprio in 2018 about his relationship with Low. Representatives for Kardashian and DiCaprio did not immediately respond to Insider's request for comment, sent outside normal working hours.

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