Description: Adidas is launching a new line with actress Jenna Ortega Adidas unexpectedly updated its financial guidance for the coming year, warning investors that the aftershocks of its dealing with Ye, the rapper formerly known as Kanye West, keep on coming. If it does not sell the existing Yeezy stock, it could lower sales by $1.3 billion and reduce operating profit by $535 million.

Source: MediaPost.com

Date: Feb 10, 2023

Link: https://www.mediapost.com/publications/article/382445/haunted-by-kanye-deal-adidas-posts-warning.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=129253&hashid=7T9TCmQZSDGbnu-424RuBQ

Questions for discussion:

• How much is this situation due to the cancelled working relationship with Kanye West?
• What are other possible explanations for these financial results?
• Do you think moving ahead with Jenna Ortega makes sense?
• What would you advise the company do at this time?