Adidas is saying it’s in a serious financial pinch … and it’s blaming the bind directly on its decision to split from Kanye West.
The athletic brand gave the worrisome update Thursday, saying it’s expected to lose a whopping $1.3 billion in sales in 2023 — and the company says it’s because it’s unable to sell off all the Yeezy shoes and clothes it still owns.
As we reported, Adidas cut ties with Ye last year after his antisemitic comments and actions … but the brand announced soon after dropping him that it would continue to sell Kanye’s designs, just without the Yeezy name.
Adidas Ends Kanye West, Yeezy Partnership
Based on the financial report, it doesn’t seem like that’s working.
The statement says it could lose another $534 mil if it pulls the plug on repurposing the remaining Yeezy stash — CEO Bjørn Gulden adds, “The numbers speak for themselves. We are currently not performing the way we should.” He says 2023 is a year of transition for the brand.
FYI — we reported there’s a clause in Ye’s contract with Adidas that says he could get a reduced fee if his designs get sold with a rebrand … but we were told the brand simply isn’t cutting checks for him.