Adidas slows down because of Kanye West scandal

In the third quarter of 2022, Adidas sales increased by 4% to €6.4 billion, but became less than expected due to the breakdown of the relationship with the creator of the brand Yeezy Kanye West, WWD writes.

At the beginning of the year, the German sportswear brand expected growth of 11% to 13%. Now Adidas predicts only a low of 10% for all of 2022. The company said that part of the reason was the termination of cooperation with West because of his anti-Semitic statements.

Adidas said the termination of the contract with the rapper and designer is likely to cost the brand €250m. The seasonality of Yeezy sales also played a part in the decline in profit growth. The brand's products were expected to sell well in the fourth quarter of this year.

Market conditions changed in early September, when consumer demand in Western markets slowed and logistics capabilities in China deteriorated further. As a result, the company has too much product left over, which will lead to increased discounts for the remainder of the year. This will increasingly impact the earnings, Adidas Chief Financial Officer Harm Ohlmeyer said in a statement.