Adidas shares tanked nearly 11 per cent after warning it could face a major hit to profits this year after cutting ties with Ye, formerly Kanye West.
The German sportswear maker said that it could lose hundreds of millions of dollars after it ended its nine-year partnership to produce shoe range Yeezy in October.
Ye, who was previously married to reality star Kim Kardashian, was suspended from Instagram and Twitter over alleged anti-Semitic content.
Hitting the wrong note: Adidas said that it could lose hundreds of millions of dollars after it ended its nine-year partnership to produce shoe range Yeezy in October
Adidas said his actions were ‘unacceptable, hateful and dangerous, and they violated the company’s values of diversity and inclusion, mutual respect and fairness’.
Adidas said it was still deciding whether to scrap its remaining Yeezy stock and would take a £443m hit to its profits if it is all written off.
The company also expects a shake-up of the business to cost a further £177m. That could mean Adidas is pushed into a £620m operating loss this year.
Boss Bjorn Gulden said: ‘The numbers speak for themselves. We are not performing the way we should.’
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