Adidas slashes outlook after Kanye West split

STORY: Adidas's split with Kanye West is proving costly.

The sportswear giant slashed its outlook for the year on Wednesday (November 9).

Last month, Adidas cut ties with West - also known as Ye.

It made the move after the rapper and designer made a series of antisemitic remarks.

The tie-up had produced a number of hot-selling Yeezy-branded sneakers.

Adidas said earlier that ending the partnership would likely bring down annual earnings by half.

It now projects net income of around $252 million this year.

The firm expects its currency-neutral revenue to grow at a low-single-digit rate in 2022.

That is down from a previously forecast mid-single-digit rate.

It expects an operating margin of around 2.5%, rather than 4%.

Adidas also blamed slower demand in China for the weaker outlook.

It reported a 27% drop in cross-company revenue in the Chinese market in the third quarter.

It pointed to challenges there posed by health-crisis restrictions.

The company posted net income of $66 million - revising down a preliminary figure by almost two-thirds after it ended the Ye partnership.