Adidas profits from Yeezy sales and donates to charity
- Adidas sold €350 million ($373 million) worth of Yeezy branded apparel in the third quarter
- Adidas generated profits of €150 million from sales of leftover Yeezy stock in Q3
- Adidas’ decision to cut ties with Kanye West caused its share price to plummet
- Adidas will donate a portion of its Yeezy profits to charity, including the Anti-Defamation League
- Adidas posted operating profits of €409 million, down 27.5% YoY
- Adidas’ revenues dropped 6% to €5.99 billion, impacted by lower Yeezy sales and a drop in North American sales
- Adidas’ currency-neutral revenues increased 1% YoY, driven by growth in Latin America, Greater China, and the Asia Pacific region
- Excluding Yeezy, Adidas’ currency-neutral sales rose 2% YoY
- RBC analysts remain confident in Adidas’ ability to turnaround the business under new CEO Gulden
Adidas has sold €350 million ($373 million) worth of Yeezy branded apparel in the third quarter, generating profits of €150 million from sales of leftover Yeezy stock. This comes after Adidas decided to cut ties with Kanye West, causing its share price to plummet. However, the company has chosen to continue selling Yeezy merchandise and donate a portion of its profits to charity, including the Anti-Defamation League. Despite a decrease in operating profits and revenues, Adidas remains confident in its ability to turnaround the business under new CEO Gulden.
Factuality Level: 7
Factuality Justification: The article provides information about Adidas’ sales of Yeezy branded apparel and the impact of their partnership with Kanye West. It also mentions the company’s decision to continue selling Yeezy merchandise and donate a portion of profits to charity. The article includes financial figures and quotes from Adidas’ CEO. However, it does not provide any sources or additional context for the information presented.
Noise Level: 3
Noise Justification: The article provides relevant information about Adidas’ sales of Yeezy branded apparel and the impact of cutting ties with Kanye West. However, it includes some irrelevant details about the company’s stock price and inventory levels. The article lacks scientific rigor and intellectual honesty as it does not provide evidence or data to support its claims. Overall, the article contains some noise and filler content.
Financial Relevance: Yes
Financial Markets Impacted: Adidas
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to Adidas’ financial performance and its decision to continue selling Yeezy merchandise after ending its partnership with Kanye West. There is no mention of any extreme event.
Public Companies: Adidas (ADS)
Key People: Kanye West (rapper), Bjørn Gulden (CEO)
Reported publicly:
www.marketwatch.com 
