![]() ![]() The immediate impact is expected to be a EUR 250 million (US$246 million) hit to Adidas’ fourth-quarter net income, the report adds. “After months of speculation and increasing public pressure, narrow-moat Adidas gave Kanye West (Ye) what he has wanted and terminated their heretofore successful partnership,” says a Morningstar equity report, adding that “while this move had recently become inevitable, its impact will be more severe than we had anticipated as Adidas has ended production of all Yeezy products and ceased royalty payments.” Adidas said in a public statement it would end production of Yeezy branded products, a partnership between the footwear firm and West, and stop all payments to Ye and his companies with immediate effect. Last week, Adidas severed ties with the rapper Kanye West over his comments made over social media. Adidas sells its products in more than 160 countries through stores and e-commerce sites. Its fashion brands include Ivy Park and Y-3. German sportswear juggernaut Adidas ( ADDYY) designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. For investors who like to invest based on headlines, you may want to consider stocks of the following companies, which are currently trading at a discount to our fair value estimates.
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