February 10, 2023
Adidas’ Business Breakup with Kanye West Could Cost Them Over $1 Billion
If Adidas thought they would be able to get rid of Ye, formally known as Kanye West, that easily – guess again.
According to CNN, the breakup with the music producer is costing Adidas a pretty penny. The company anticipates losing $1.3 billion in revenue this year due to Ye’s designs, Yeezy, selling slower than usual. In a statement, Adidas said if the company “can’t repurpose any of the remaining Ye clothing,” it could cost the company $534 million in operating profit this year. “The numbers speak for themselves,” Adidas CEO Bjørn Gulden said. “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.”
Black Enterprise reported last October that the mega sports brand dropped Ye, after a nine-year partnership, following his anti-semitic antics and daring the brand to drop him during an appearance on the popular Drink Champs podcast. “I can say anti-Semitic things, and Adidas can’t drop me. Now what?” the former music producer said. Shortly after, the apparel brand lowered their sales projections.
MarketWatch reported that shares for the company are also down, dropping 46.6% in the last year.
Yeezy isn’t the only partnership struggling with Adidas. Black Enterprise reported the news earlier this week that Beyoncé’s Ivy Park clothing line is in trouble as well. Allegedly, Ivy Park only brought $40 million in sales in 2022, compared to the $93 million the brand earned in 2021. Although there was some money lost, Adidas claims their partnership with Queen Bey is “strong and successful,” according to CNN.
The Chicago-born rapper can’t seem to stay out of the negative spotlight lately. After a string of odd behavior, Black Enterprise reported that Ye is under investigation after getting into an altercation with a woman after she was seen recording him. He allegedly got into a screaming match with the woman on his way to his children’s basketball game and threw her phone in the street.