Is it Adi-das or A-di-das? That’s the least of the company’s worries right now. It just reported its first loss in 30 years. As Kim K will attest, breaking up with Kanye isn’t easy.

The lowdown

• 🇬🇧 UK economy returns to growth in January.

• ⏰ US House to vote on TikTok crackdown.

• 🙅 PwC Australia cuts hundreds of jobs after tax leaks scandal.

Featured story

Adidas posts first loss in 30 years

Adidas has reported its first loss in more than 30 years, as it recovers from a messy breakup with Kanye West. The sportswear giant lost €377 million in the fourth quarter, but says it expects business to improve in 2024.

Adidas cut ties with Kanye in 2022 over the rapper’s antisemitic comments and suspended sales of its highly profitable Yeezy sneaker line. But it’s still trying to offload excess stock. Last month, Adidas said it would sell remaining Yeezy products “at least at cost”.

The company is also reducing its workforce amid weaker demand. Last month, Adidas announced it was cutting 2% of its total workforce – more than 1,600 jobs. It expects the efforts will enable a return to double-digit growth in the second half of the year.

Some of that growth is forecast from China, where sales are growing at a double-digit rate after an 8% increase in 2023. But sales are seen falling in North America, Adidas’s second biggest market, where excess stock remains high.

The content we're consuming today

• WSJ: The charges that can nearly double your Uber or Lyft to the airport ($)

• Persuasion: How pseudo-intellectualism ruined journalism

• Insider: The great YouTube exodus is coming

Off-balance sheet items

• Need to do some serious work? Here’s how to reach a flow state.

The bottom line