Kanye West’s Shenanigans Have Forced Adidas To Suffer a Potential $530M Loss as Fans Refuse To Buy Yeezy Anymore
In the past few months, Kanye West has decided to flame his reputation and his business relationships by spouting antisemitic rhetoric on just about any platform he can get his hands on. Since then, many have wondered what would happen to Kanye West’s iconic brands, such as the Adidas x YEEZY partnership, arguably the most high-profile.
According to the Financial Times, Adidas has Yeezy sneakers worth more than €500 million ($530 million) after cutting ties with Kanye West. According to the report, the German sportswear giant is currently trying to sell the items under its own brand to minimize its potential losses in selling these products. There are reports that Adidas will release a new line of Yeezy-designed sneakers in the coming year without any Kanye West branding affiliated with them.
Adidas To Find A Loophole To Prevent A $530M Loss
A decision to end its partnership with the rapper Ye, formerly known as Kanye West, over antisemitic remarks led Adidas to lower its annual earnings forecast. Despite the company’s chief financial officer saying the profitability of Yeezy shoe collaboration with Ye has been “overstated,” the German shoe and sportswear company cut its sales and profit outlook for the year. New reports claim that Adidas is having trouble selling the inventory of Yeezy sneakers worth more than $500M since cutting ties with West.
According to the Financial Times, it is estimated that Yeezy’s sales accounted for 7% of Adidas’ overall sales this year, totaling $1.8 billion. According to their estimates, the brand lost $247 million in profits due to cutting ties with West after the artist made several antisemitic remarks and social media attacks on the brand’s executives, whom he accused of ‘stealing‘ his ideas.
CFO Harm Ohlmeyer said that the company would be able to offset the breakup’s impact next year by eliminating royalties and marketing fees.
Yeezy Sneakers: What’s Adidas’ Next Move?
In 2016, Adidas reportedly filed a trademark for the SPLY-350, which many fans speculate will replace the Yeezy brand. On Tuesday, SoleSavy obtained leaked images of the 2023 shoe launch showing the words ‘SPLY-350’ scrawled on its side. The shoes are reminiscent of the Kanye West line with their recognizable neutral/earth-toned colorway and Yeezy boost soles.
Recently, sneaker culture company SoleSavy shared the above images on Twitter, and it seems Adidas isn’t entirely wiping its hand clean of West’s association with the brand, and it is continuing to produce shoes that became synonymous with West’s clothing label over time. Adidas 350 V2 ‘Granite’ sneakers are priced at $230 USD, according to the footwear/streetwear news Twitter account Ovrnundr. The shoes may launch as early as January 2023.
According to Forbes, West lost his billionaire status due to a mass brand exodus due to his anti-semitic remarks and his praises for Adolf Hitler and the Nazis.
Source: Financial Times
