The Click Times: Adidas is reportedly set to lose $650 million after dropping Kanye West’s Yeezy line. The apparel giant announced Monday it would no longer be doing business with the hip-hop artist and designer. Adidas said it had “decided to discontinue its partnership with Kanye West,” citing poor sales.
The sportswear giant announced on Monday that it was pulling the Yeezy Boost 350 V2 and Yeezy 950 sneakers from stores amid a legal battle with West over his use of the brand’s name without authorization.
West, however, has a different opinion. He tweeted that Adidas is being “clueless” by cutting ties with him, adding that he was “betrayed” by the company002E
Adidas stands to lose $650 million after dropping Kanye’s Yeezy line
Due to the failure of Yeezy, Bernstein decreased its 2023 sales prediction for Adidas by around $398 million in a note sent to clients on Tuesday.
With the $247 million in revenue lost this year reported by the firm and the $400 million in lost revenue anticipated by Bernstein, Adidas has now lost a total of $645 million due to its breakup with West.
After the business discontinued West, Adidas shares dropped 5.6% to $97.96 in Frankfurt, dropping almost 15% over the previous five days.
Evercore ISI analyst Omar Saad said that the “divergence looks to be expanding” between the stores as shares of rival Nike increased 1.3% over time.
Adidas revealed on October 6 it was reviewing its relationship with Kanye West after the rapper arrived in Paris wearing apparel from a white nationalist organization. Adidas did not respond to West publicly until Tuesday. West’s talent agency CAA dropped him on Monday, and on Friday, high-end store Balenciaga severed ties with him.
As public opinion against the rapper shifted, Sherman said it was “absolutely the right move” for Adidas to cut ties with him. He termed it the “right thing to do” over the long run but noted the “toll” it has on the business’s bottom line in the short term.
Follow us on Instagram
