Adidas: Kanye Dip sneakers are no longer in trend

Adidas: Kanye Dip sneakers are no longer in trend Symbiosis of business with celebrities is not always profitable. Adidas (ETR: ADSGN) has been in serious trouble since the scandal with its venture partner Kanye West. The stock has already made up for the speculative failure, but the company does not yet have an effective recovery plan.Adidas remains the world's second-largest sportswear company, but its shares have fallen 50% since the start of the year due to weak global demand, a Russian market shutdown and internal conflicts.The company was forced to cut earnings forecasts again after the end of cooperation with Ye's Yeezy brand. The German giant chose to pull out of the partnership following a series of offensive acts by rapper and businessman Kanye West that culminated in anti-Semitic remarks.Adidas has lost an important business factor: the contract with the star was supposed to work until 2026. The amount of loss now depends on the company's ability to use its ownership of all current Yeezy designs, just without mentioning the brand itself. Adidas is preparing the announcement of shoes similar to Yeezy in April of next year.So the dismal results for the third quarter are no surprise: retail sales grew by only 11% (to 6.41 billion), but operating income was 564 million, that is, the operating margin remains 8.8%. For the current situation in the industry, this is not such a bad indicator.We believe that the first targets for growth in the main Adidas stocks can be found in the 138.20-138.50 zone with an average annual revenue growth rate of 4.5-5.2% over 5 years.We note several positive short-term factors: the 2022 FIFA World Cup is stimulating interest in football uniforms, shoes and paraphernalia, and an aggressive advertising campaign has been launched to promote the basketball market.Let's see what happens.Profits to yall!