Adidas takes the lead after ending partnership with Kanye West

Adidas Bounces Back from Kanye West Partnership with €700m Profit Forecast

Adidas has announced a projected profit of €700m (£598m) for 2024, following a tumultuous period that saw the German sportswear giant cut ties with rapper Kanye West. The company’s upbeat forecast comes just a month after posting its first losses in 30 years.

In February, Adidas revealed plans to sell its remaining Yeezy trainers from its collaboration with West at cost price. The company’s quarterly operating profit has since surged to €336m, up from €60m the previous year when it was impacted by the split with the controversial artist.

Despite the fallout with West, Adidas reported selling €150m worth of Yeezy products in the quarter, with a profit of around €50m. The remaining Yeezy stock is expected to fetch around €200m later this year, although without any additional profit.

Last year, Adidas pledged to donate a portion of the Yeezy sales proceeds to charities combating hate. The company’s decision to sever ties with West in 2022 came after he made antisemitic remarks on social media.

In a separate development, British Prime Minister Rishi Sunak found himself embroiled in a controversy after it was revealed he had been a long-time customer of Adidas and its Samba brand. Sunak issued a “fulsome” apology on LBC radio, emphasizing his loyalty to the sportswear brand.

While Adidas remains optimistic about its financial outlook, it has acknowledged challenges stemming from the devaluation of the Argentine peso, impacting its operations as the maker of shirts for Argentina’s national football team. Rival sportswear firm Puma has also cited the currency devaluation as a factor affecting its financial performance in the region.