Sam Amico
Adidas and rapper Kanye West have split, and apparently, neither will ever be the same. Or at least, their ability to profit off each other won’t.
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With Adidas now unable to sell his once-popular Yeezy brand, the company lost an astounding $540 million at the end of last year, as relayed by NPR.
Other than that, things are going well. Maybe.
The fourth-quarter losses aren’t all on the Yeezy brand, it seems. Some of it can be chalked up to higher supply costs and the dwindling revenue in China, according to Adidas itself.
Adidas Dilemma: What to Do With $1.3 Billion of Yeezy Gear
But more losses could await — and big ones at that. The Germany-based company projected losses of about another $500 million or more should it decide not to repurpose the Yeezy brand. That appears to be the most likely option.
Adidas and West separated in October after the rapper was accused of making antisemitic comments on social media and interviews, bringing pressure on the company to end the relationship. Adidas did just that but has been struggling to find ways to replace that income ever since.
Per reports, the Yeezy line accounted for at least 15 percent of Adidas’ overall sales.
For now, Adidas is viewing 2023 as a “transition year,” CEO Bjorn Gulden said in a statement. After that, the company “can then start to build a profitable business again in 2024.”
And Adidas will continue to try to do without Kanye.
