Adidas Cuts FY22 Outlook After Kanye West Split - adidas (OTC:ADDYY)

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.
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