May 22, 2024

Brighton Journal

Complete News World

Adidas is in the lead after exiting Kanye West's deal

Adidas is in the lead after exiting Kanye West's deal

Adidas has emerged from its painful relationship with rapper Kanye West and says it expects to make profits of €700m (£598m) in 2024.

In February, the German sportswear giant said it planned to sell the remaining Yeezy training shoes from its partnership with West for at least cost price.

The upbeat comments from Adidas on Tuesday come a month after the company reported its first loss in 30 years.

It manufactures Samba, Gazelle and Camps shoes.

The company said the revised numbers were 200 million euros higher than initially expected and fell to a better-than-expected first quarter of the year.

The company said its quarterly operating profit reached 336 million euros, up from 60 million euros a year earlier when it was hit by the split with West.

Adidas also said it sold another €150 million worth of Yeezy products in the quarter, generating a profit of around €50 million.

It said the remainder of its shares in Yeezy would likely be sold for around €200 million later this year, but without any further profits.

Last year, it pledged to donate some of its sales proceeds to charities working to combat hate.

Adidas cut ties with West in November 2022 over anti-Semitic comments he made on social media, but the company still enjoys a diverse fan base with wealthy and powerful customers.

Sunak's 'full' apology.

Last week, Adidas and its Samba brand made headlines after it emerged that British Prime Minister Rishi Sunak had been a client of the company “for many years.”

But while the global company warned that its profits would be affected by the Yeezy case, it also drew attention to the devaluation of the Argentine peso at the end of 2023.

Adidas has been the manufacturer of the Argentina national football team's shirts for decades.

Rival sportswear company Puma also said the depreciation of the Argentine currency had affected its financial results, as the region was its largest and fastest growing market.