Adidas reports a significant impact on its business following the termination of its collaboration with rapper and designer Kanye West. The partnership, which resulted in the Yeezy brand of trainers, was cut off by Adidas last year after West made anti-Semitic remarks on social media. The move has been detrimental to the company's North American sales, which saw a drop of 20% in the first quarter of 2023. Adidas cites the loss of Yeezy as a significant factor, with sales declining by $440 million, per BBC.
Despite this setback, the brand's latest results have shown that sales are up 9% when excluding the Yeezy business. The figures are better than what analysts had anticipated, and total revenue has only fallen by 1%. However, Adidas CEO Bjorn Gulden acknowledges that the loss of Yeezy “is of course hurting us,” and the North American market has been particularly impacted.
The end of the partnership comes after West's anti-Semitic comments, which Adidas publicly condemned. The company stated that it does not tolerate hate speech of any kind. Nonetheless, the timing of this announcement is noteworthy, as a new Yeezy store has recently opened near Adidas. West reportedly acquired the new office following his eviction from the previous one for unpaid rent, per HNHH. The new office is said to be a deliberate move to troll Adidas, and fans have shared images on social media showing the new location's proximity to the sports brand's headquarters.
The fallout from the ending of the collaboration between Adidas and Kanye West highlights the significant role celebrity collaborations play in the sports apparel industry. However, it also demonstrates the importance of upholding corporate values and taking a firm stance against hate speech. While Adidas may have lost a significant source of revenue, its public condemnation of West's remarks sends a powerful message about its commitment to social responsibility.
Follow Us
Subscribe