ADIDAS AG slashed its profitability forecast for the fourth time this year after ending its partnership with rapper Ye and discontinuing the lucrative Yeezy line of sneakers.

The German company said it now expects an operating margin of 2.5% this year, down from a previous target of 4%.

The lower target reflects the company’s decision last month to end its collaboration with the rapper and designer formerly known as Kanye West, following a string of offensive and anti-Semitic remarks. The Yeezy line accounted for about half of Adidas’s total profits, according to analysts.

Bjorn Gulden, the former CEO of rival Puma SE, will take over as CEO in January. The company is seeking to revive its fortunes amid a panoply of challenges, including in China, once Adidas’s biggest growth engine, where sales are down by about a third through September amid consumer boycotts of Western brands.

The shares were little changed in early trading, after initially slumping as much as 3.1%. The stock has risen about 28% since Friday, when Adidas announced it was in talks with Gulden about the CEO job.

Demand in Western markets has started to slow as consumers feel the impact of surging inflation and concerns grow about a potential recession. That is creating a situation where unsold goods are piling up. Adidas also trimmed its forecast for currency-neutral revenue growth this year to a low-single-digit rate from a mid-single-digit goal.

Adidas is hoping the World Cup football tournament, which starts this month, will provide a boost. Traditionally, the event has led to a surge in sales of jerseys and football gear — although the unusual timing of this year’s event taking place in the Northern hemisphere’s late autumn has so far limited the excitement. – BLOOMBERG