Adidas will slash its 2022 dividend, the sporstwear maker said on Wednesday, warning a split with rapper and fashion designer Ye could push it to its first annual loss in three decades this year.
The company will recommend a dividend of 0.70 euros per share, down from 3.30 euros a share in 2021, at a May 11 annual general meeting, it said.
The company cut ties with Ye in October following a series of antisemitic comments he made on social media and in interviews which also prompted Twitter and Instagram toGulden said Adidas is still deciding what to do with its stock of unsold Yeezy footwear. Burning the shoes poses a sustainability issue, he said, while giving them away to charity is complicated due to their resale value, which has surged since the split.
One option could be for Adidas to donate proceeds from the sale of repurposed Yeezy stock to charity, Gulden said. The company forecast 2023 underlying operating profit at roughly break-even when taking into account the $500 million loss from not selling existing Yeezy stock.
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