Sporting Goods – Adidas Cuts Forecast Again – Economy

Adidas boss Kasper Rorsted leaves his company with full warehouses and another forecast correction. The end of the partnership with the scandalous rapper Kanye West, who now calls himself Ye, costs the world’s second largest sporting goods manufacturer sales and profits. In addition, full inventories and weaker consumer demand are causing problems for the Nike competitor. For the current year, Adidas is therefore only expecting a small, single-digit percentage increase in sales after currency adjustments and is halving the already evaporated profit forecast to 250 million euros. Adidas recently ended its collaboration with the rapper after he caused a stir with anti-Semitic statements. The “Yeezy” line designed by West sells particularly well in the Christmas business, the sales stop alone decimates profits by 250 million euros. Adidas CFO Harm Ohlmeyer said Adidas holds the rights to the products, just not the name. We will comment at a later date on how to proceed. According to experts, Adidas recently generated sales of around 1.5 billion euros a year with Yeezy products – around seven percent of total group sales. As recently as October, Adidas had predicted a profit of 500 million euros and a five percent increase in sales for 2022.

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