The challenge facing Adidas is how to cushion the financial blow from ending its Yeezy label partnership with Kanye West. Adidas AG again cut revenue and earnings guidance for the year to account for the end of its Yeezy label partnership with musician and designer Kanye West. The German sporting-goods giant now expects 2022 revenue to increase by a low-single-digit percentage at constant currency, from previous guidance in the mid single digits, it said Wednesday. Net profit from continuing operations should come in at around 250 million euros, equivalent to $251.9 million, half what it previously expected, with a gross margin of 47% and an operating margin of just 2.5%, Adidas said.

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