Adidas net income cut in half after split from Kanye West
Adidas cut ties with Kanye West -- known formally as Ye -- in late October
November 09, 2022
German sportswear giant Adidas slashed its earnings forecast on Wednesday, saying the end of its partnership with rapper Kanye West would cut this year´s net income in half.
The group now expects a net profit from continuing operations of 250 million euros ($252 million) for 2022, down from a 500-million-euro estimate last month, which was itself a downgrade from previous forecasts in part because of slowing sales in China.
The group´s full-year revenues are forecast to grow at a "low-single-digit" rate, Adidas said in a statement, compared with the mid-single-digit rate it had still expected last month.
Adidas blamed the gloomier outlook on the "high seasonality" of the successful "Yeezy" line developed with West, in a nod to the upcoming Christmas season that usually provides a sales boost.
Adidas cut ties with West -- known formally as Ye -- in late October after the artist made a series of anti-Semitic comments.
The group said net income from continuing operations reached 66 million euros in the third quarter, down from 479 million over the July-September period last year.
