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.
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.
-
Nepal chooses toddler as its new ‘living goddess’Under the Radar Girls between two and four are typically chosen to live inside the temple as the Kumari – until puberty strikes
-
October 5 editorial cartoonsCartoons Sunday's political cartoons include half-truth hucksters, Capitol lockdown, and more
-
Jaguar Land Rover’s cyber bailoutTalking Point Should the government do more to protect business from the ‘cyber shockwave’?
-
Primatologist Jane Goodall dies at 91Speed Read She rose to fame following her groundbreaking field research with chimpanzees
-
Florida erases rainbow crosswalk at Pulse nightclubSpeed 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 illsSpeed Read The president would prefer the museum to highlight 'success,' 'brightness' and 'the future'
-
Trump to host Kennedy Honors for Kiss, StalloneSpeed 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 viewSpeed 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 talkSpeed 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
-
Shakespeare not an absent spouse, study proposesspeed read A letter fragment suggests that the Shakespeares lived together all along, says scholar Matthew Steggle
