kanye west adidas termination
German sportswear giant Adidas posted its first loss in more than three decades on Wednesday, hit by the fallout from the end of its collaboration with “controversial rapper” Kanye West.
The $82 million loss followed a $668 million profit a year earlier. Sales fell 5% to $23.374 billion, hit hardest in the US by the withdrawal of the Yeezy trainers made with West.
Adidas, the German sportswear company, on Wednesday revealed an annual loss for 2023, still reeling from the fallout from the collapse of its partnership with Kanye West.
Sales fell slightly in the fourth quarter, with a particularly sharp drop in North America, as Adidas sold less to wholesalers to clear excess inventory.
The German sportswear giant had ended its contract with the US rapper at the end of 2022 after he allegedly made a series of “anti-Semitic remarks”, leaving the company with thousands of unsold Yeezy shoes made in collaboration. Adidas and West had collaborated on the blockbuster Yeezy trainers range.
Yeezy sales in 2023 brought in $819 million, far less than the $1.31 billion the logo generated in 2022.
Adidas expects sales to grow at a “mid-single-digit rate” through 2024. The company plans to sell the remaining Yeezy sales at cost, which would generate about $273 million in revenue.
“It will take a long time to turn the business [around]. … The result is of course not good enough,” said Addidas CEO Bjorn Gulden at a press conference.
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