Adidas could lose over $1 billion after terminating Kanye West partnership


Adidas isn't mincing words about its finances in a post-Ye world.
The company has warned it could lose over $1 billion in revenue this year as a result of terminating its partnership with Ye, the rapper formerly known as Kanye West, assuming it can't sell its existing Yeezy inventory, CNN reports.
Adidas had been in business with the rapper for nine years and launched the Yeezy clothing and shoe line with him, but the company officially dropped Ye last October over his series of antisemitic remarks.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
In a new statement, Adidas said it's continuing to "review future options for the utilization" of its remaining Yeezy inventory. But the company's financial guidance for 2023 "accounts for the significant adverse impact from not selling" the Yeezy stock, and Adidas warned that not being able to sell this inventory would "lower revenues by around" $1.3 billion in 2023.
"Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the write-off of the existing Yeezy inventory" and lower the company's operating profit by an additional $534 million this year, Adidas also noted. "The numbers speak for themselves," CEO Bjørn Gulden warned. "We are currently not performing the way we should."
Adidas previously said it would continue to sell Ye's shoe designs without the Yeezy branding. The company's decision to end its partnership with the rapper over his "unacceptable, hateful and dangerous" remarks came after he warned he would go "death con 3 on JEWISH PEOPLE," but before he openly praised Adolf Hitler.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
October 13 editorial cartoons
Cartoons Monday's political cartoons include Donald Trump's consolation prize, government workers during shutdown, and more
-
Can Gaza momentum help end the war in Ukraine?
Today's Big Question Zelenskyy’s request for long-range Tomahawk missiles hints at ‘warming relations’ between Ukraine and US
-
The Israeli hostages and Palestinian prisoners being released
The Explainer Triumphant Donald Trump addresses the Israeli parliament as families on both sides of the Gaza war reunite with their loved ones
-
Hungary’s Krasznahorkai wins Nobel for literature
Speed Read László Krasznahorkai is the author of acclaimed novels like ‘The Melancholy of Resistance’ and ‘Satantango’
-
Primatologist Jane Goodall dies at 91
Speed Read She rose to fame following her groundbreaking field research with chimpanzees
-
Florida erases rainbow crosswalk at Pulse nightclub
Speed Read The colorful crosswalk was outside the former LGBTQ nightclub where 49 people were killed in a 2016 shooting
-
Trump says Smithsonian too focused on slavery's ills
Speed Read The president would prefer the museum to highlight 'success,' 'brightness' and 'the future'
-
Trump to host Kennedy Honors for Kiss, Stallone
Speed Read Actor Sylvester Stallone and the glam-rock band Kiss were among those named as this year's inductees
-
White House seeks to bend Smithsonian to Trump's view
Speed Read The Smithsonian Institution's 21 museums are under review to ensure their content aligns with the president's interpretation of American history
-
Charlamagne Tha God irks Trump with Epstein talk
Speed Read The radio host said the Jeffrey Epstein scandal could help 'traditional conservatives' take back the Republican Party
-
CBS cancels Colbert's 'Late Show'
Speed Read 'The Late Show with Stephen Colbert' is ending next year