Breaking with rapper Kanye West and drop in Chinese sales cause Adidas to lose €724M in 4Q22

adidas kanye west

Norbolsa : The company publishes pre-announced results. It registers an operating loss in Q4 of €724M due to the effect of breaking the agreement with the rapper Kanye West and with sales in China falling by 50% in the quarter. Gross margin was 39.1%, affected by higher supply costs and higher discounts. It estimates an operating loss of €700m in 2023 due to inventory provisions and extraordinary costs. It considers 2023 to be a year of transition, expecting to return to profitability in 2024. Lowers its 2022 dividend to €0.7/share vs. €3.3 the previous year, due to losses from breaking the deal with rapper Kanye West.

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