Adidas Expects Smaller Operating Loss in 2023 After Parting Ways with Kanye West's Yeezy Collection - adidas (OTC:ADDYY)

The company's potential write-off from remaining inventory was now €400 million ($442.5 million), down from €500 million, as it trimmed its operating loss forecast for 2023 to €450 million from €700 million.

Also Read: Adidas Receives Orders Worth $565M For Massive Unsold Yeezy Inventory: Report

After his offensive comments, Adidas ended its partnership with musician Ye, formerly Kanye West, in October 2022.

After facing flak, Adidas said it would end the production of Yeezy-branded products.

According to Morningstar analyst David Swartz, Adidas' deal with the brand grew to nearly $2 billion a year for the company, 10% of its revenue.

Price Action: ADDYY shares are trading higher by 3.44% at $101.67 on the last check Tuesday.

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German sportswear firm Adidas AG (OTC:ADDYY) expects a significantly smaller operating loss for FY23 following better-than-expected early sales of its Yeezy stock, which it offloaded after cutting relations with collection creator Ye.

Also Read: Adidas Receives Orders Worth $565M For Massive Unsold Yeezy Inventory: Report

The sportswear firm also reported a slight outperformance in the underlying Adidas business and still expects underlying operating profit, excluding one-offs related to Yeezy and a more comprehensive ongoing strategic review, to roughly break even for the year, CNBC reports.