Adidas, the German shoe giant, says that it might face major financial loss after severing ties with the now-disgraced and “cancelled” American rapper Kanye West.
“I can say antisemitic things, and Adidas can’t drop me. Now What?”
Adidas and Kanye parted ways in November last year after Kanye made a series of public comments that were largely perceived as antisemitic. The Yeezy line of Adidas is a collaboration with Kanye. The company has still not decided what it will do with the remaining Yeezy stock.
Chief Executive of Adidas said in statement, “The numbers speak for themselves. We are currently not performing the way we should.” According to a report by the BBC, the German shoe giant could take a 500 million euros hit if it drops the Yeezy line. Adidas’s profits dropped by a substantial 669 million euros last year. The total worth of unsold Yeezy stock at Adidas is now worth a $1.3 billion, and the company still has not figured out what to do with it.
Adidas has had a turbulent financial year after sustaining losses from the Kanye episode and pulling out of the Russia market on account of the Russian invasion of Ukraine.
Kanye has been instrumental in reinventing the Adidas brand, making it hipper and cooler—and helping it secure a major share in the highly competitive global shoe market. Thanks to Kanye’s alliance with Adidas, the company was able to rake in big dollars in profit and give other big name brands Nike and Puma a run for their money.
However, since the antisemitic comments by Kanye, Adidas’s stocks have plunged and calls for boycott of the Yeezy line have resulted in tremendous losses. “I can say antisemitic things, and Adidas can’t drop me. Now What?” Kanye had said at a podcast taunting Adidas.