Kanye West has hurt his image as an entrepreneur and global artist after his recent anti-Semitism spree. It all started when, in October 2022, he introduced Yeezy shirts with “White Lives Matter’ printed on them. Since then, he has been hurting religious and ethnic sentiments with his fashion and verbal statements. Due to this, many companies, including the shoe giant Adidas, have severed ties with him.
When Kanye West went on his hate spree, companies and labels decided to part ways with the rapper. They severed any ties with him and his brand, Yeezy. But, along with Kanye West, companies like Adidas also took a hit due to his hate-mongering behavior. They predicted a loss of $256 million. Currently, Adidas has $1.3 billion worth of Yeezy stock, which they do not know what to do with. The Adidas CEO, Bjørn Gulden, admitted that cutting ties with Ye has hurt them.
Related: What Will Happen To Adidas Yeezys After The Company Severed Ties With Kanye West?
Adidas Loses $442 Million After Severing Ties With Kanye West
In 2013, Adidas was facing heavy losses, and it was competing at a cutthroat level with Nike. Nike had some of the best-selling sneakers that year, earning good profits. So, to compete, Adidas signed a deal with Ye‘s Yeezys, and in 2015, it launched its first collaboration with the Yeezy 750. In 2018, the shoe giant witnessed 18% sales growth, and Adidas decided to extend the contract with the entrepreneur till 2026.
However, the deal between Adidas and Kanye West is nullified now. But it has impacted Adidas heavily. In the first quarter of 2023, Adidas reported a $442 million loss, causing revenue to dip by 1%. In North America, Adidas’ sales fell by 20%. The company’s CEO, Bjørn Gulden, said that the loss of the Yeezy business is “of course hurting us.”
In Case You Missed: Why Kanye West Will Not Run For President Elections In 2024?
The Company Is Getting Sued By Its Shareholders
Adidas has gotten into hot water with its shareholders. They have now filed a class-action lawsuit against the company. The lawsuit accuses the company of not paying heed to the 2018 reports that warned Adidas about future problems with the collaboration.
The company “alluded to the risk that shareholders might have rather than stating that the company had actually considered ending the partnership as a result of West’s behavior.” Adidas has refuted these “unfounded claims,” and it has assured to take “all necessary measures to vigorously defend” itself.
You Might Also Like To Read: Kanye West’s Yeezy Has To Pay $300K To A Creative Director For Failing To Respond To A Lawsuit
