Adidas slashes outlook after Kanye West split
STORY: Adidas's split with Kanye West is proving costly.
The sportswear giant slashed its outlook for the year on Wednesday (November 9).
Last month, Adidas cut ties with West - also known as Ye.
It made the move after the rapper and designer made a series of antisemitic remarks.
The tie-up had produced a number of hot-selling Yeezy-branded sneakers.
Adidas said earlier that ending the partnership would likely bring down annual earnings by half.
It now projects net income of around $252 million this year.
The firm expects its currency-neutral revenue to grow at a low-single-digit rate in 2022.
That is down from a previously forecast mid-single-digit rate.
It expects an operating margin of around 2.5%, rather than 4%.
Adidas also blamed slower demand in China for the weaker outlook.
It reported a 27% drop in cross-company revenue in the Chinese market in the third quarter.
It pointed to challenges there posed by health-crisis restrictions.
The company posted net income of $66 million - revising down a preliminary figure by almost two-thirds after it ended the Ye partnership.
