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Adidas Wonders What To Do With Yeezy Shoes After Ye Split in 2022

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Germany,  FRANKFURT — After splitting with the artist formerly Kanye West, Adidas is still trying to figure out what to do with 1.2 billion euros ($1.3 billion) worth of Yeezy sneakers. This has resulted in a significant loss for the German sportswear manufacturer at the end of 2017 and future pain expectations.

Selling the well-liked shoe line would entail paying royalties to Ye, who was fired by Adidas five months ago after making anti-Semitic remarks on social media and in interviews, according to CEO Bjorn Gulden. During an earnings call on Wednesday, he mentioned “several variables” regarding what to do with the shoes that are currently stored in warehouses.

Although some businesses have provided recycling options, destroying them could “create sustainability difficulties,” according to Gulden, who was appointed CEO following the uproar over Ye’s comments. Restitching them to sell them while obscuring the Yeezy brand “is not very honest. Therefore, it’s not an option,” he continued.

The goods would “come back again very quickly” because of their high market value, so suggestions to donate them to those in need in locations like earthquake-stricken Syria or Turkey “aren’t an option,” Gulden said.

“I can promise you that the people who this has wounded will also get something positive out of it and gain donations and revenues in different ways, shapes or forms,” Adidas CEO said if the company decides to sell the shoes.

Adidas cut relations with Ye in October after other companies had been pressured to do the same due to the rapper’s harsh comments towards Jews and other groups. Currently, the business is attempting to replace its flagship Yeezy brand, which experts have estimated to account for as much as 15% of its net income and find new ways to become profitable.

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Adidas cut relations with Ye in October.

In the final three months of 2022, the Ye split cost 600 million euros in lost revenues, contributing to the company’s 513 million euro net loss. In contrast to the decline, ascribed to rising supply prices and declining sales in China, the fourth quarter of 2021 saw a profit of 213 million euros.

If the company chooses not to repurpose the remaining Yeezy products in stock, it anticipates further losses of 500 million euros to its earnings this year. The business anticipates an operating deficit of 700 million euros in 2023.

Gulden claimed that while “so many corporations” were ready to purchase the well-liked shoes, doing so would require paying royalties to Ye. But, “it is not accurate” that the corporation was discussing selling them.

“Gazillions of people” had expressed their thoughts, and “when you’re sitting on the inside, it looks a little bit different than it looks on the outside,” he had heard.

Adidas, according to Gulden, is currently looking into claims made by former workers that Ye poisoned the workplace and that the sportswear firm was aware of his unsavory behavior but did little to safeguard staff.

In 2024, the CEO predicted, “we can start to establish a profitable firm again.” The CEO referred to 2023 as “a transition year.”

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Net sales for the fourth quarter of last year increased just 1.3%, to 5.21 billion euros

Net sales for the fourth quarter of last year increased just 1.3%, to 5.21 billion euros, over the same period in the previous year. The company cited a 50% decline in revenue in China and greater supply and shipping expenses, which pricing increases could not compensate for.

The Herzogenaurach, Germany-based corporation reported a net profit of 638 million euros for the entire year on revenues that increased 6% to 22.5 billion euros.

Adidas’ top sales and marketing executives were replaced, further upending its hierarchy. Following Roland Auschel’s retirement from the company after 33 years, Arthur Hoeld, now in charge of the Europe, Middle East, and Africa region, will take over as global sales chief.

Brian Grevy, the head of global brands, will retire on March 31. CEO Gulden will handle his marketing and product duties.

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SOURCE – (AP)

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Toyota Recalls 280,000 Vehicles Because They May ‘Creep Forward’ In Neutral

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Toyota recalled approximately 280,000 pickups and SUVs in the United States because the engine may not fully disengage while in neutral.

“Certain parts of the gearbox may not immediately disengage when the vehicle is shifted to the neutral position,” the Japanese automaker stated on Wednesday. It said this allows some engine power to continue going through to the wheels.

As a result, the vehicle may “inadvertently creep forward at a low speed when it is on a flat surface and no brakes are applied, leading to an increased risk of a crash,” according to the manufacturer.

toyota

Toyota Recalls 280,000 Vehicles Because They May ‘Creep Forward’ In Neutral

Certain Toyota Tundra, Sequoia, and Lexus LX 600 cars made between 2022 and 2024 are being recalled. Lexus is Toyota’s luxury brand.

Toyota said it will notify owners of recalled vehicles in late April and update the gearbox software.

The business stated that the recall is one of three in the United States on Wednesday.

Toyota announced the recall of an additional 19,000 vehicles due to a software issue: “the rearview image may not display within the period of time required by certain US safety regulations after the driver shifts the vehicle into reverse, increasing the risk of a crash while backing the vehicle.”

toyota

Toyota Recalls 280,000 Vehicles Because They May ‘Creep Forward’ In Neutral

It noted that the safety recall applies to select Mirai and Lexus LS, LC, and ES models manufactured in North America between 2023 and 2024.

Additionally, about 4,000 Toyota Camry and Camry Hybrid vehicles are being recalled due to safety concerns with the head restraints on rear fold-down seats, which “increase the risk of injury during certain collisions.”

Toyota is the world’s largest carmaker by sales, yet it risks becoming embroiled in safety controversies.

In December, it recalled approximately 1 million cars and SUVs in the United States owing to a potential fault that might cause the passenger airbag to fail to deploy in a crash.

toyota

Toyota Recalls 280,000 Vehicles Because They May ‘Creep Forward’ In Neutral

The recall affected 15 Lexus cars from 2020 to 2021, including the Camry, Rav4, Sienna, RX350, and ES350.

After admitting to forging safety test results for more than 30 years, Daihatsu, a small Japanese automaker under Toyota ownership, stopped domestic production late last year.

SOURCE – (CNN)

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Walmart To Acquire Smart TV Maker Vizio For $2.3 Billion In Bid To Boost Its Advertising Business

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Walmart is paying $2.3 billion for smart TV maker Vizio to boost its quickly growing advertising business and compete with Amazon.

If the purchase is completed, Walmart will gain access to Vizio’s SmartCast operating system, allowing the retail juggernaut to offer its suppliers the opportunity to display adverts on streaming devices.

Walmart Connect, which provides marketers with access to Walmart’s large consumer base, has helped the company grow its media and advertising business. Walmart reported on Tuesday that its global advertising business increased by nearly 28% to $3.4 billion last year.

The developments follow Amazon’s announcement last month that it will begin charging Prime members $2.99 per month to keep their films and TV series ad-free, in addition to the $14.99 per month or $139 per year Prime price.

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What does Walmart stand to gain from a television manufacturer?

Vizio’s SmartCast technology has 18 million active accounts and has increased 400% since 2018. The firms claim that Vizio’s platform has over 500 direct advertisers and that ads now account for most of the company’s gross profit.

In recent years, makers of streaming gear, such as Roku and Vizio, have moved their focus to advertising revenue. Vizio established its Vizio Ads business unit in 2019, claiming to be “one of the few connected TV companies with the device penetration, consumer opt-in, and infrastructure to deliver meaningful scale.”

Walmart saw Vizio’s growing consumer base and grabbed the opportunity to develop its Walmart Connect business.

“We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment,” said Seth Dallaire, executive vice president and chief revenue officer at Walmart U.S.

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Who else is ramping up screen advertising?

Other large streamers, such as Netflix and Disney, have embraced the dual model, allowing them to generate revenue from commercials while simultaneously allowing customers to opt-out for a higher charge.

However, in the ever-changing streaming industry, whether consumers are prepared to pay more to see fewer commercials when they already pay subscription fees, frequently for numerous providers, remains to be seen. Many consumers “cut the cord” and ditched cable TV because they were frustrated with their ever-increasing fees.

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How did the companies’ shares fare?

Vizio stock rose about 15% in the afternoon, reaching $10.96 per share.

Walmart’s stock jumped 3.1% to $175.66 per share after exceeding Wall Street’s expectations with its sales and profit on Tuesday.

Roku, one of Vizio’s primary competitors, saw its stock drop 6.4% by midday.

SOURCE – (AP)

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Sacked Twitter Staff In Ghana Finally Get Pay-Off

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X, then known as Twitter, has finally paid out the employees it fired from its African offices more than a year ago, according to the agency that represents them.

Most had just been with the social media network in Ghana’s capital, Accra, for a few months before they were let go in November 2022.

They had threatened to sue X for failing to pay the redundancy money they said they were promised.

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Sacked Twitter Staff In Ghana Finally Get Pay-Off

The corporation has yet to respond.

X previously stated that it had paid ex-employees in full.

Elon Musk, who took over the corporation in 2022, launched a large global workforce layoff, dismissing almost 6,000 individuals. He said he was losing more than $4 million (£3.5 million) daily.

The African contingent, which numbered fewer than 20, had only recently relocated to X’s new office in

Accra after eight months of working from home during the COVID-19 outbreak.

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Sacked Twitter Staff In Ghana Finally Get Pay-Off

Agency Seven, the organisation providing legal representation to the workforce, stated that it had successfully obtained a redundancy settlement and repatriation fees for foreign employees but did not indicate the payout size.

“They are very pleased to finally be able to get their due, put this behind them, and look forward to the future,” Agency Seven Seven spokesperson Carla Olympio told the BBC.

Last year, terminated employees told the BBC that their treatment at X had impacted their mental health and money.

“It’s difficult when it’s the world’s richest man owing you money and closure,” one of them stated.

They claimed they were initially assured that they would be paid to work for one more month while their contracts were being terminated. However, they were instantly shut out of their emails, and no more wage payments were issued.

Since then, the crew has reported a difficult battle for compensation.

Some had migrated from adjacent nations, such as Nigeria. Their contract was terminated, leaving them and their families stuck in Ghana.

In a rare interview with the BBC last April, Mr Musk revealed that the social media powerhouse had 1,500 staff, down from just under 8,000 when he bought the company.

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Sacked Twitter Staff In Ghana Finally Get Pay-Off

When the news of Mr Musk’s extreme workforce reduction broke, he tweeted that laid-off employees received three months’ severance compensation.

However, staff members in the Africa office claim they still need this.

According to Agency Seven Seven, X only started negotiating with the terminated African staff after the BBC publicised the news.

Last year, ex-employees filed a complaint in a California court accusing X of failing to pay at least $500 million in promised severance benefits.

SOURCE – (BBC)

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