Adidas Cuts FY22 Outlook After Kanye West Split

  • 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
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