The German sportswear firm Adidas dropped its earnings projection by half on Wednesday, citing the loss of its association with rapper Kanye West as the reason.Information Guide Nigeria
The business now anticipates a net profit from continuing operations of 250 million euros ($252 million) for 2022, a decrease from last month’s estimate of 500 million euros, which itself a reduction from prior projections due in part to sluggish sales in China.
Adidas stated in a statement that company expects its full-year revenues to grow at a “low-single-digit” rate, as opposed to the mid-single-digit rate it anticipated last month.
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Adidas attributed its gloomier prognosis to the “high seasonality” of the successful “Yeezy” collection co-created with Kanye West, a reference to the forthcoming Christmas season, which typically boosts sales.
Late in October, Adidas severed connections with West, formerly known as Ye, when the rapper made anti-Semitic remarks.
The group reported a net income from continuing operations of 66 million euros for the third quarter, compared to 479 million euros for the same period in the prior year.
Adidas chose Bjorn Gulden, formerly of competitor Puma, as its new CEO on Tuesday, entrusted with turning the page on months of turmoil.
In addition to the dissolution of its association with Yeezy, Adidas has struggled with China’s stringent Covid-19 regulations, which have impeded its activity in what has become a vital market.
Adidas reported that demand in Western markets has also slowed as consumers in a number of nations struggle with high inflation and a rising cost of living.JAMB Result
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