Adidas might try to dig out of its Yeezy crisis with a new CEO in what could be a 'first step toward better days' for the embattled company

• Adidas is "in talks" with former Puma CEO Bjørn Gulden about becoming its next CEO.
• Investors responded favorably to the news, with Adidas shares climbing more than 20%.

Adidas shares on Friday spiked more than 20% after the company confirmed it's "in talks" with former Puma CEO Bjørn Gulden to become the company's next CEO.

Adidas shares have now nearly recovered since Ye, formerly known as Kanye West, wore a "White Lives Matter" T-shirt and engulfed the company in controversy.

Last week Adidas said it had cut ties with Ye, following his subsequent antisemetic comments, and said its bottom line would take a $248 million hit this year. Ye's Yeezy business with Adidas generated an estimated $1.8 billion in annual sales.

In Gulden, Adidas could potentially appoint an executive known for his work with celebrities ranging from Rihanna to Jay-Z, but he'll have his work cut out for him given Adidas' unique challenges in the wake of the Ye split, and broader industry problems. They include excessive inventory and economic uncertainty.

Still, one of the top footwear analysts is optimistic.

"We think this is one of the best hires they could make," Wedbush Securities analyst Tom Nikic wrote about Gulden in a note to investors Friday morning.

Nikic wrote his note after a German business magazine reported the possible hire. In a one-sentence news release, Adidas subsequently confirmed it's "in talks" with Gulden, who stepped down as Puma CEO today.

Gulden would succeed Kasper Rorsted at Adidas, who will step down in 2023. He previously worked for Adidas before becoming Puma CEO in 2013. In his time at Puma the company reported a 14% compound annual growth rate and its margins improved significantly.

"(Puma under Gulden) benefited most from their emergence as a pre-eminent lifestyle and athleisure brand," Nikic wrote. "Their partnerships with high-influence celebrities like Rihanna, Kylie Jenner, and Selena Gomez helped them address the female athleticwear shopper (long under-served by the athletic industry broadly), and they also generated brand heat through other celebrity partnerships such as Jay-Z, J. Cole, and Nipsey Hussle (R.I.P.)."

Nikic noted Puma's also gained momentum in performance basketball, a product category long dominated by industry leader Nike.

Adidas, like other sportswear companies, is dealing with an uncertain economy, excess inventory as the result of supply chain challenges, and shifting consumer demand in China.

"Hiring Mr. Gulden as the next CEO would likely be a first step towards better days," Nikic wrote.