Kanye West Yeezy Fallout Leads To Catastrophe For Adidas

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Givenchy : Front Row - Paris Fashion Week - Womenswear Spring/Summer 2023
PARIS, FRANCE - OCTOBER 02: (EDITORIAL USE ONLY - For Non-Editorial use please seek approval from Fashion House) Kanye West attends the Givenchy Womenswear Spring/Summer 2023 show as part of Paris Fashion Week on October 02, 2022 in Paris, France. (Photo by Stephane Cardinale - Corbis/Corbis via Getty Images)
Losing Yeezy has been catastrophic for Adidas.

Kanye West and his Yeezy brand were a huge moneymaker for Adidas. Overall, Ye was able to turn Adidas into one of the most fashion-forward sportswear brands in the world. After years of stagnancy, Yeezy uplifted Adidas to the point where they were doing more sales than Jordan Brand. However, that has all changed now that Kanye is no longer with the brand. Of course, you can't really fault Adidas for the decision when you consider how Ye was siding with the Nazis and professing his love for Hitler. At some point, you have no choice but to pull the plug.

That said, Adidas has taken a very large hit in terms of its financials. In numerous reports, it has been noted that the German brand is holding on to $530 million worth of Yeezys. Moreover, these Yeezys still have the Yeezy branding on them, which means they cannot sell the shoes without Ye's consent. Just a few weeks ago, rumors circulated saying that both sides had reached an agreement on selling these kicks. However, nothing actually materialized from that.

Kanye West Has Adidas Scrambling

Kanye West onstage during the 2022 BET Awards at Microsoft Theater on June 26, 2022 in Los Angeles, California. (Photo by Paras Griffin/Getty Images for BET)

Now, according to CNBC, Adidas is facing some catastrophic losses. Their fourth-quarter numbers show an operating loss of around $760 million. Additionally, this includes a net loss of about $500 million. Dividends for shareholders will likely go from $3.50 to about $0.80, which is certainly not a good sign. Lastly, Adidas is projecting its net operations losses for the year to be $700 million. The last time the brand operated at a loss was about 31 years ago.

Overall, this is a bad sign for Adidas, and they will have to figure out some sort of plan of attack. The sportswear and sneaker games can be difficult, and it is all about trends and image. If Adidas can't show people that it is still a hip imprint, then it could be facing an extremely difficult road. However, it should be noted that these operations losses include the $500 million in Yeezys that cannot be sold. Either way, this is going to be a story to follow over the next few months.

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About The Author
Alexander Cole is the current editor-in-chief of HotNewHipHop. He started at HotNewHipHop back in 2018 where he began as a Sports and Sneakers writer. It was here where he began to hone his craft, putting his journalism degree from Concordia University in Montreal, Quebec, to good use. Since that time, he has documented some of the biggest stories in the hip-hop world. From the Kendrick Lamar and Drake beef to the disturbing allegations against Diddy, Alex has helped HotNewHipHop navigate large-scale stories as they happen. In 2021, he went to the Bahamas for the Big 3's Championship Game. It was here where he got to interview legendary figures like Ice Cube, Clyde Drexler, and Stephen Jackson. He has also interviewed other superstar athletes such as Antonio Brown, Damian Lillard, and Paul Pierce. This is in addition to conversations with social media provocateurs like Jake Paul, and younger respected artists like Kaycyy, Lil Tecca, and Jeleel!
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