Dropping Kanye West could cost more than $1 Bn. in sales - Adidas

COLOMBO (News 1 st) - Adidas has warned of a potential major loss on its profits after ending its partnership with rapper and fashion designer Kanye West.

Adidas ended its 9-year partnership with Kanye (who legally changed his name to Ye in 2021), in November 2022.

"It could lose hundreds of millions of dollars this year if it decides not to sell its stock of Yeezy sneakers", the firm's new boss said.

The sportswear giant cut ties with West, after he posted anti-Semitic comments on social media.

"Financial guidance for 2023 accounts for the significant adverse impact from not selling the existing stock", the company said shortly after the partnership was dissolved adding it "would try to sell the clothing, stripped of the Yeezy name and branding."

"Selling the sneakers under its own branding would save the company about $300 million in royalty payments and marketing fees", Adidas said.

The announcement marks the company's fourth profit warning since July.