Adidas’ breakup with Ye drives lower earnings outlook

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Adidas has lowered its earnings forecast for the full year to account for losses from ending its partnership with the rapper formerly known as Kanye West over his antisemitic remarks. The German shoe and sportswear maker had previously said ending the partnership with Ye’s Yeezy brand would cost it 250 million euros. As a result, on Wednesday it lowered its sales outlook for the year, halving net profit from continuing operations to 250 million euros instead of 500 million euros. The company had already cut its full-year earnings forecasts five days before it announced it was splitting with Ye. The company’s chief financial officer says the profitability of the Yeezy shoe collaboration with Ye had been “overstated.”