EntertainmentCelebrityAdidas hemorrhaging money after dropping Kanye West

Adidas hemorrhaging money after dropping Kanye West

After Adidas dropped Kanye West from its line some time ago after the rapper’s controversial anti-Semitic comments, the cost to company is massive with reports indicating that Adidas could lose up to a billion dollars.

To make matters worse it appears that its line with Beyonce is also losing money. Her Ivy Park clothing line dropped 50% in the last year. However Beyonce is still being paid a cool $20 million a year from the brand collaboration. The singer’s contract ends at the end of 2023.

The bigger losses however come from Kanye West’s Yeezy shoes which cannot be sold now due to the company having to drop the rapper from their line. According to a financial report, Adidas will lose $1.3 billion in full year revenue and its operating profit will suffer to the tune of $533 million.

However there is a possibility that Adidas may try to sell the shoes it has already produced but with nothing to identify it with the Yeezy brand.

Adidas dropped West in October last year along with many other brands who dropped West for his controversial and racist anti semitic rants.

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Adidas CEO Bjorn Gulden said, “2023 will be a year of transition to set the base to again be a growing and profitable company. We will put full focus on the consumer, our athletes , our retail partners and our Adidas employees. Together we will work on creating brand heat, improve our product engine, better serve our distribution and assure that adidas is a great and fun place to work. Adidas has all the ingredients to be successful:

A great brand, great people, fantastic partners and a global infrastructure second to none. We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again but we need some time.

In the meantime, West who is also known is Ye continues to live it up with his new wife Bianca Censori.

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