German sporting goods manufacturer Adidas is back on track after issues with its once-lucrative Yeezy partnership with the rapper Ye, formerly Kanye West.
In the current financial year, Germany’s largest sporting goods and sportswear manufacturer expects to achieve an operating profit of €1.7 billion ($1.8 billion) to €1.8 billion, the company announced on Wednesday.
Sales are expected to increase by a high single-digit percentage at local currency.
In the past financial year, Adidas generated sales of around €23.7 billion, 11% more than in 2023. Operating profit rose to €1.3 billion, up from €268 million in 2023. Below the line, there was a net profit from continuing operations of €832 million, compared to a loss of €58 million in the previous year.
The sale of the last “Yeezy” products contributed around €200 million to the operating result and €650 million to sales.
Adidas had to part ways with the US rapper after racist and anti-Semitic comments he made came to light. The product line had previously been highly successful. The abrupt split, combined with other effects, had caused Adidas to post a net loss for the first time in 30 years in 2023.
Source: dpa.com
