After exiting the Russian market, and then canceling its partnership with Kanye “Ye” West, German sportwear maker Adidas more than halved its net profits in the third quarter of 2022 compared to a year prior.

Net profits at the company plunged to €‎352 million ($353 million), down from €‎984 million ($986 million) in the third quarter last year.

Operating profits were down 16%, at €‎564 million ($565.5 million), as net income from continuing operations plunged from €‎479 million ($480 million) last year to only €‎66 million ($66 million) during the period.

The plunge was triggered by a constellation of factors, chief among them massive write-offs associated with the company’s Russia exit. The sportswear maker was “negatively impacted by several one-off costs totaling almost €‎300 million ($300 million) as well as extraordinary tax effects in Q3,” according to the report.

In addition, consumer activity shrank in Western countries at the same time, as inflation triggered a cost of living crisis which contributed to the declines.

In a statement, Adidas CFO Harm Ohlmeyer said, “The market environment shifted at the beginning of September as consumer demand in Western markets slowed and traffic trends in Greater China further deteriorated.”

Adidas also had to downgrade its full-year outlook, due to ending its relationship with musician and fashion mogul Kanye West, or Ye, after he was accused of making anti-Semitic comments on social media. The relationship with West had stretched back to 2013, and was contracted to continue until 2026, according to media reports.

Net income from continuing operations is now projected to be about €‎250 million ($251.56 million), roughly half of the nearly €‎500 million ($501 million) estimated in previous guidance.

The company sees currency-neutral revenues growing by low single-digits in 2022 and it downgraded the gross margin forecast for the year to 47%, from the previously expected 47.5%.