Adidas’s breakup with Ye drives lower earnings outlook - BusinessMirror

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Adidas on Wednesday lowered its earnings forecast for the year to account for losses from ending its partnership with the rapper formerly known as Kanye West over his antisemitic remarks. Know more:

Adidas owns the rights to product designs except for the Yeezy name and is developing plans for what to do with existing inventory.

“In other words, it does not include any further central cost allocation for sourcing, digital, retail, or any other services that this part of our business has been benefitting from and that were essential for its success,” Ohlmeyer said. The Yeezy brand accounted for up to 15% of Adidas’s net income, Morningstar analyst David Swartz said in a note October 26.

 

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