MUNICH (Reuters) - German sportswear maker Adidas (OTC:ADDYY) expects operating profit to nearly double to about 500 million euros ($542.3 million) this year after the company's break-up with Kanye West and the discontinuation of its Yeezy business.
Adidas booked an operating profit of 268 million euros in 2023, according to an unscheduled preliminary earnings announcement, down from 669 million euros a year earlier but easily beating the 100 million euro loss previously forecast by CEO Bjorn Gulden.
Gulden, in the job since the start of 2023, has been driving a turnaround at the company bruised by its break-up with rapper West, who goes by Ye, which left Adidas with unsold Yeezy shoes worth 1.2 billion euros.
Adidas said a better-than-expected fourth quarter was helped by a decision not to write off most of its Yeezy inventory for 300 million euros. It will instead sell the remaining products at cost.
($1 = 0.9220 euros)