Adidas plans to sell Yeezys under new branding
(RTTNews) – Sportswear and footwear giant Adidas AG plans to sell Yeezys under its own brand.
The German company, in a bid to recoup lost revenue after the recent termination of its partnership with Kanye West, plans to sell sneakers of the same design stripped of the rapper’s branding.
As announced on October 25, 2022, Adidas ended its partnership with Ye following his anti-Semitic remarks. The company said at the time that the decision would result in a short-term negative impact of up to €250 million on its fiscal 2022 net income due to the strong seasonality of the Adidas Yeezy business in the fourth quarter.
“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,” Adidas said in a statement at the time.
Following his controversial comments, Ye had a completed documentary about him shelved and he was dropped by his talent agency, fashion brand Balenciaga, and his bank JP Morgan, among others.
The company also lowered its guidance for fiscal year 2022, reflecting the impact of the termination of the partnership with Adidas Yeezy.
For fiscal year 2022, Adidas now expects net profit from continuing operations of approximately €250 million, operating margin of approximately 2.5%, gross margin of approximately 47.0% and currency-neutral earnings to grow at a low single-digit rate.
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