Adidas cuts its forecasts for 2022 by 250 million dollars after split with Kanye West

German sports equipment manufacturer Adidas cut its earnings forecast for 2022 again on Wednesday after ending its juicy collaboration with the boisterous rapper Kanye WestBy the end of october.

As a result, the group expects to post an annual net result of around $250m versus the $500m forecast in its latest October forecast, which had already been reduced on the background of Covid-related revenue losses in China. -19.

Global turnover is expected to increase only between 0.01% and 5 percent.

However, Adidas is counting on a $400 million boost from sales of soccer jerseys and other soccer cleats thanks to the World Cup in Qatar, which starts in November.

the norwegian Bjorn Guldenboss of rival company Puma, was appointed on Tuesday to lead the pack from 2023. The list of challenges awaiting him to tackle the lackluster performance of the three-stripe brand is already long.

The loss of revenue due to the breakup of the partnership with Kanye West alone is estimated at $500 million between now and the end of 2022.

The group from Herzogenaurach announced on October 25 that it had cut ties with the billionaire musician after certain anti-Semitic remarks.

The collaboration between Adidas and the American star, started in 2014, was for a long time one of the most successful in the world of fashion and this is immediately reflected in the adjusted forecasts of the group.

Gross margin, one of its key indicators, should now stand at 47% in 2022 from 47.5% previously.

The operating result should represent 2.5% of sales, compared to the 4% expected at the end of October.