Adidas Said To Lose Up To $1 Billion After Not Selling Yeezy
During a recent investor’s call, Adidas warned Thursday that it’s expected to lose $1.3 billion (1.2 billion euro) in revenue this year because it’s unable to sell the designer’s Yeezy clothing and shoes. Adidas ended its nine-year partnership with the rapper last October because of his antisemitic remarks. According to CNN, if the company can’t “repurpose” any of the remaining Ye clothing, Adidas said that could cost the company $534 million (500 million euro) in operating profit this year.
The news comes less than four months after Adidas severed its relationship with Ye. Adidas had built products around Ye since first launching Yeezy in 2015, but the relationship unraveled over the last year as Ye made several public comments supporting anti-semitic rhetoric.
“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in an October statement. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
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