Adidas Says Dropping Kanye West Could Cost Company More Than $1 Billion In Sales

Kanye West

Adidas Says Dropping Kanye West Could Cost Company More Than $1 Billion In Sales

It appears Adidas decision to split from Kanye West is costing the company big bucks.

On Thursday (Feb. 9) the company announced it’s expected to lose $1.3 billion in revenue this year because it’s unable to sell the designer’s Yeezy clothing and shoes.

As you may recall, Adidas, and other major corporations, cut ties with the “Donda” rapper following multiple antisemitic rants he made during interviews and on social media in 2022.

In a statement, the famed brand said:

“Adidas does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”

Kanye West

Shortly after parting ways with Kanye West, Adidas said it would continue to sell the brand without the Yeezy name attached. According to Adidas, selling the sneakers under its own branding would save the company about $300 million in royalty payments and marketing fees. However, the company hasn’t had much luck in doing so.

Adidas CEO Bjørn Gulden said in a statement:

“The numbers speak for themselves. We are currently not performing the way we should. 2023 will be a year of transition to set the base to again be a growing and profitable company. We will put full focus on the consumer, our athletes, our retail partners and our adidas employees.”

If the company can’t “repurpose” any of the remaining Yeezy clothing, Adidas said that could cost them $534 million in operating profit this year, making this Adidas’ first profit loss in 31 years.

Adidas isn’t the only one that’s being impacted by this split. Kanye West lost his billionaire status due to the terminated deal. Reportedly, Forbes made it official in October 2022, claiming Kanye can no longer be considered a billionaire following the multiple companies that have ended their partnership with the entertainer.

As for Adidas, other options include destroying the Yeezy collection or donating it.

Reportedly, Adidas stock has dropped 45% over the past year.

What are your thoughts? Let us know in the comments below!

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