Adidas intends to discontinue links with Kanye West
According to persons familiar with the situation, sources reported on Tuesday that Adidas add AG intends to discontinue its relationship with American rapper Kanye West, now known as Ye, as a result of a string of disrespectful actions from the artist and designer.
The information was released after Adidas revealed on October 6 that it has reviewed its business relationship with Kanye West.
Adidas’ stock dropped more than 9% on Friday after the sportswear company raised concerns about profits for the second time in three months.
The company issued the warning after it revealed late on Thursday that sales in China and the western markets had been substantially lower than anticipated, leaving it with a growing stock of unsold trainers and other equipment. As it hunts for a new CEO, the shop has had to deal with a public relations dilemma related to its partnership with rapper and designer Kanye West.
The second-largest sportswear manufacturer in the world, Adidas, issued a warning that slower sales will result in profits that are 60% lower than anticipated this year. In contrast to a previous target of 7% and less than half of the 9.4% it achieved last year, the operational profit margin is predicted to decrease by 4%.
The third worst performing German blue-chip during the previous 12 months is Adidas, whose shares are currently trading at their lowest level in six years.
Adidas intends to discontinue links with Kanye West
A few weeks after publishing its initial profit warning in late July, it announced the early retirement of chief executive Kasper Rrsted. He had previously agreed to a contract extension through 2026, and as a result, he will depart the company in 2023.
