Adidas remains committed to the Yeezy brand created by rapper Kanye West despite his comments describing slavery as a choice and praising U.S. President Donald Trump, the sportswear company said on Thursday.
Adidas agreed in 2016 to expand its partnership with West, including opening new stores, after it poached the singer-turned-designer from Nike in 2013, helping the German brand recover in the U.S. market in recent years.
However, Adidas faced a call this week from the Care2 petition site to drop the artist after an interview in which he seemed to suggest that 400 years of slavery had been a choice, and also praised Trump for doing the "impossible".
READ: Kanye West kata 'perhambaan' adalah satu pilihan
"It is clear there are some remarks that we don't support," Chief Executive Kasper Rorsted told a conference call for journalists, but added: "We are very committed to the Yeezy brand moving forward."
Rorsted said the partnership was very important for the brand, although it had minimal impact on sales as most Yeezy products are released in limited quantities to generate hype.
Rorsted made the comments after Adidas reported better-than-expected first-quarter net profit, as it outperformed rivals Nike and Under Armour in North America.
Adidas shares, up 13 percent in the last three months after it announced a big share buyback in March, were down 1 percent at 0857 GMT, with traders expressing concern about the West partnership and slower growth in Europe.
Sales rose 21 percent in North America, and 26 percent in greater China, but only 5 percent in western Europe and fell 16 percent in Russia, where Rorsted said he saw little prospect for a recovery while sanctions continue.
Nike reported a 6 percent drop in sales in North America in the quarter to Feb. 28, while Under Armour saw flat sales in the region in the first three months of the year.
Adidas said ecommerce sales growth slowed to 27 percent, which Rorsted said was due to fewer product launches in the quarter.
Net profit rose 17 percent to 542 million euros (US$650 million), ahead analysts average forecast of 510 million euros as higher prices helped offset currency headwinds and an increase in marketing spending.
Rorsted also highlighted gross margin improvements at struggling fitness brand Reebok, which saw sales return to growth in North America for the first time in years.
Unlike German rival Puma, Rorsted said he was not too concerned about the prospect of U.S. tariffs on footwear made in China, noting Adidas sources most of its shoes from Vietnam, with Chinese factories mainly producing for the domestic market.
Reuters
Thu May 03 2018
Adidas faced a call this week from the Care2 petition site to drop the artist after an interview in which he seemed to suggest that 400 years of slavery had been a choice, and also praised Trump for doing the "impossible". - REUTERS/File
Bilionair India, Gautam Adani diheret ke mahkamah AS, negara lain turut timbang dakwaan
Pengasas konglomerat Kumpulan Adani dan tujuh eksekutif kanannya didakw beri rasuah RM1.15 bilion untuk dapat kontrak tenaga solar.
Tiada bukti kaitkan Modi dengan aktiviti jenayah di Kanada - Pegawai
Kerajaan Kanada tidak menemui sebarang bukti untuk mencadangkan Perdana Menteri India mengetahui tentang jenayah yang dilakukan oleh ejen India di Kanada.
Padah curi kabel, dua lelaki melecur anggota badan
Lelaki berumur 49 dan 31 tahun dikejarkan ke Hospital Shah Alam kerana melecur di bahagian muka, tangan dan kaki.
Shah Rukh Khan teruja kembali ke Malaysia
"Saya bukanlah orang yang penting untuk dianggap sebagai rakan tetapi saya adalah rakan bagi Malaysia dan UAE."
Moscow lancar peluru berpandu hipersonik Oreshnik, Zelensky gusar
Zelenskyy "secara langsung menuduh sekutunya di barat meninggalkannya tanpa perlindungan ketika menghadapi tindakan Rusia."
China bakal laksana dasar visa percuma untuk sembilan negara lagi
Pengecualian visa akan diberikan kepada pemegang pasport biasa dari Bulgaria, Romania, Croatia, Montenegro, Macedonia Utara, Malta, Estonia, Latvia dan Jepun secara percubaan.
Piala Malaysia: Perak mula bergaya, KDA belum selamat
Perak FC merobek gawang KDN FC menerusi Clayton Da Silva yang menanduk masuk hantaran Adilet Kanybekov pada minit ke-22.
Masyarakat pelbagai linguistik jadi pemangkin keharmonian Malaysia
Masyarakat itu bukan sahaja tahu untuk berkomunikasi, tetapi juga menghargai kepelbagaian budaya dan bahasa yang ada di sekeliling mereka.
Misi Jelajah Dunia Akhir BWF Aaron-Wooi Yik terima tamparan
Aaron-Wooi Yik terpaksa akur dengan kehebatan pasangan tuan rumah He Ji Ting-Ren Xiang Yu dalam aksi yang berlanjutan ke set penentuan.
Kerajaan Pahang tingkatkan Bantuan Prihatin Pahang Siswa kepada RM14.18 juta
Peningkatan RM6.18 juta itu bagi membolehkan peruntukan BPP Siswa diagihkan kepada 19,525 mahasiswa daripada pelbagai IPT.
RWC2019: Sonny B peraga jersi All Blacks
Atlet berusia 33 tahun itu menyarungkan jersi hasil inspirasi pereka fesyen terkemuka dari negara matahari terbit iaitu, Yohji Yamamoto.
Predator, ikon bola sepak kembali
Generasi baharu berpeluang mencipta sejarah dengan but bola sepak ikonik, Predator yang dikeluarkan kembali.
Nike, Adidas berentap untuk ke final Piala Dunia 2014
Dua pasukan tajaan Adidas, Jerman dan Argentina akan bertarung dengan dua pasukan tajaan Nike, Brazil dan Belanda untuk tiket ke final.