Kanye West Rug Pull Reportedly Ends Up Costing Adidas More Than the Rapper – Sports Giant Set to Lose $1.27B in a Rare First in the Fashion Industry
Kanye West has been the most hated personality for his remarks. He has lashed out with controversial statements on the internet. He has been making headlines for the same. The rapper had a nasty divorce from Kim Kardashian. West stays firm on his views, making it difficult for his career.
He recently was the eye candy of the media due to his secret marriage with Bianca Censori. It has made him quite active on the internet again, leading to a major downfall in his professional career. Ye had a successful sneaker line, the famous Yeezy with Addidas. The company is suffering loss since the collaboration with the Heartless rapper. It is on the verge of losing $1.27 billion due to West.
Adidas to lose majorly due to Kanye West’s Yeezy line
The German sportswear and footwear brand Adidas collaborated with the controversial rapper on his Yeezy line. They cut the tie with Kanye West after his anti-Semitism and hate speech. The rapper’s statements leading to the controversy have cost the brand a major deal. The German brand is still left with a huge number of products associated with Yeezy and the rapper.
If Adidas fails to sell the existing Yeezy inventor, it could lose about 1.27 billion dollars in revenue in 2023. The expert also said their operating profit would fall by about $535 million. It is rarer in the fashion industry for a big brand to suffer such a loss.
The sports brand decided not to sell the Yeezy merchandise in its financial statement this year. But now, the brand needs to rethink its decision since it could suffer a huge loss as a renowned brand.
The price of the Adidas Yeezy ranges from 200-600 dollars. The brand can sell the remaining stock by rebranding the shoes, selling them at a discount, or renaming them as ‘Yeezy Zombies’.
Why did Adidas cut ties with Kanye West?
The German brand and the Praise God rapper first teamed up in 2013. They cemented their alliance in 2016. Adidas called it one of the most successful collaborations. As the controversy followed the rapper with his antisemitic remarks, the brand cut its ties.
During a podcast, West claimed George Floyd died from drug use and not from asphyxiation caused by the policeman Derek Chauvin. He took the issue further by wearing a White Lives Matter T-shirt in response to the Black Lives Matter anti-racist movement. This incident took place at a fashion show in Paris. The scandalous incident led the brand to sever its ties with the 45-year-old for their famous Yeezy sneaker line.
Source: Marca
