Adidas Slashes 2022 Outlook Again Following Split With Kanye West
November 09 2022 - 2:24AM
Dow Jones News
By Joshua Kirby
Adidas again cut revenue and earnings guidance for the year to
account for the end of its Yeezy label partnership with designer
Kanye West, but said it expects a recovery next year amid a
cost-savings program.
The German sporting-goods giant now expects group revenue to
grow by a low-single-digit percentage at constant currency, from
previous guidance in the mid single digits, it said Wednesday. Net
profit from continuing operations should come in at around 250
million euros ($251.9 million) half what it previously expected,
with a gross margin of 47% and operating margin of just 2.5%,
Adidas said.
The revision is the fourth time this year Adidas has lowered its
outlook for 2022, and comes after an end to the lucrative Yeezy
collaboration following a string of controversies including a
recent anti-Semitic outburst from rapper Mr. West.
The company, however, expects to see a rebound in the bottom
line in 2023. The Russia-related costs won't recur, while a program
to cushion inflation and higher costs should boost 2023 profit by
some EUR200 million, Adidas said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
November 09, 2022 02:09 ET (07:09 GMT)
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