Kanye West is touted as one of the biggest names in the world of hip-hop, but he is also a true genius when it comes to business as well. Ye’s accolades simply speak for themselves. That being said, Adidas cut him off last year after a lot of controversy surrounding the rapper. Now it seems Adidas is expected to suffer a huge loss after dropping Kanye West.
Last year, Kanye West made headlines for all the wrong reasons once again. This is largely due to him wearing a ‘White Lives Matter’ t-shirt during his Yeezy fashion show. Not only that, he came under fire for his recent anti-Semitic remarks. Ye stated that he’ll go “Death Con 3 On Jewish People. He also called POTUS Joe Biden a r***** for not listening to Elon Musk.
Due to this, Adidas officially cut ties with Kanye West. According to TMZ, Adidas has projected a significant loss of $1.3 billion in sales for 2023, citing its inability to sell the remaining inventory of Yeezy shoes and clothing as the primary reason.
The company statement mentions the possibility of incurring an additional loss of $534 million if they choose to discontinue the Yeezy line. CEO Bjørn Gulden acknowledges the current underperformance of the brand, stating “The numbers speak for themselves.” He also notes that 2023 will be a transitional year for Adidas.
According to the terms of Kanye West’s contract with Adidas, he may receive a reduced fee if his designs are sold under a different label. However, it appears that Adidas is not honoring this provision and has not made payments to Kanye. We’ll have to see what will become of Adidas in the end.
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