At this point, everyone knows that Adidas has dropped Ye from its brand. After all, Kanye was doing some wild things on social media at the time, and quite frankly, he still is. Overall, no brand wants to be associated with straight-up Nazi propaganda, at least not post-World War 2.
Now that Ye is gone from the brand, Adidas has had to make some huge decisions in regard to how the brand will operate. Yeezy made up seven percent of their business. Additionally, according to USA Today, Yeezy accounted for $1.8 billion in revenue this year. Had it not been for the controversies, that number would have been higher
Adidas Has A Problem On Its Hands
In a new report from the Financial Times, it was revealed that Adidas is currently sitting on $530 million worth of Yeezys. By this, we mean the Yeezys that already had the Yeezy branding on them. In the future, the three-stripes brand will sell the original designs without Yeezy branding. However, they produced a whole lot of sneakers prior to cutting ties with Ye.
At this point, there is no telling what Adidas could even do with the shoes. No matter what, they are in an incredibly bad spot. If they burn the shoes, then that is $530 million down the drain. Meanwhile, they can't sell them because that would be against the morals of the brand.
Overall, this has been a hard time for the brand, and it will only get harder from here. Without Yeezy, Adidas could see some massive losses in 2023. Not to mention, there is no guarantee that the Yeezy rebranding is successful.
Let us know what you think Adidas should do, down in the comments below. Additionally, stay tuned to HNHH for the latest news from the sneaker world.
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