- Adidas AG ADDYY has slashed its FY22 outlook impacted by the termination of its partnership with American rapper, Kanye West.
- Adidas now expects its currency-neutral revenue to grow at a low-single-digit rate in 2022. Previously it expected revenue growth to be in mid-single-digit rate.
- It expects an operating margin of around 2.5%, down from the previous outlook of 4%.
- Net income from continuing operations is anticipated to reach a level of around €250 million.
- The company’s revenues grew 11% to €6.408 billion in Q3.
- Deteriorating traffic trends in Greater China as well as slowing consumer demand in major Western markets weighed on the revenue growth in September.
- Adidas in late October severed ties with the rapper over his antisemitic speech.
- The decision will cost the company €250 million on its FY22 net income.
- Price Action: ADDYY shares closed higher by 4.71% at $60.44 on Tuesday.
- Photo Via Company
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.