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Kanye West I Adidas boss confident of positive turn after split with Kanye West I Adidas | ECONOMY

adidas will slash its 2022 dividend, the sportswear maker said on Wednesday, after warning that a break with the artist formerly known as Kanye West it could lead the company to its first annual loss in three decades this year.

Chief executive Bjørn Gulden, speaking to investors for the first time since taking the reins on January 1, has vowed to rebuild the battered brand after dealing with the fallout from ending Adidas’ partnership with West, who is now calls Ye, a deal that produced the lucrative line of Yeezy sneakers.

Adidas hasn’t said how much Yeezy has earned since its first deal with Ye in late 2013, but analysts estimate it accounted for as much as 7% of total sales in its prime years.

READ ALSO: Adidas profit falls 83% in 2022 after breaking with Kanye West

The company needs to refocus on its core business and faces a year of “transition” before turning a profit again in 2024, and returning to his sporting roots, Gulden said.

“They will see us invest in more sports (…) because that is the DNA of this company”he told reporters.

He also stated that the company will recommend a dividend of 0.70 euros (0.7374 dollars) per share, down from 3.30 euros in 2021, at an annual general meeting on May 11.

Shares of Adidas recovered from early losses to trade 1.6% higher at 1530 GMT. Since the beginning of the year they have outperformed rivals Puma and Nike, in a sign that investors are backing Gulden.

The company cut ties with Ye in October, following a series of anti-Semitic comments he made on social media and in interviews that also led Twitter and Instagram to restrict his accounts on their platforms.

Source: Reuters

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