The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | On Feb.10, Adidas warned over the potential major impact on its profits of ending its partnership with rapper and fashion designer Kanye West last November.
The firm’s new boss said it could lose hundreds of millions of dollars this year if it decides not to sell its stock of Yeezy sneakers.
The sportswear giant cut ties with West, known as Ye, after he posted anti-Semitic comments on social media. The announcement marks the company’s fourth profit warning since July. “The numbers speak for themselves. We are currently not performing the way we should,” the company’s chief executive Bjørn Gulden, said in a statement.
Adidas said it was still deciding whether to scrap its remaining Yeezy stock and would take a €500m ($536m; £443m) hit to its profits if it is all written off. On top of that the company expects a shake-up of the business to cost another €200m. That could mean it is pushed to an operating loss this year totalling €700m, the company warned.
