LONDON: Adidas AG cut its forecast for the third time since this summer after taking into account the impact of discontinuing the Yeezy line of sneakers.
The German company now expects currency-neutral revenues for the year to grow at a low-single-digit rate, down from a previous target of mid single-digits. It also lowered its forecast for this year’s operating margin to 2.5% from 4%, according to a statement.
The lower targets reflect the company’s decision last month to end its collaboration with the rapper and designer Ye, formerly known as Kanye West, following a string of offensive and anti-semitic remarks. The Yeezy line accounted for nearly half of Adidas’s total profits.