After Adidas and Kanye West ended their partnership last October, including over anti-Semitic comments the rapper might have made on Twitter, the German sportswear and footwear company announced that it could lose about $1.3 billion in annual revenue.
The company announced in a statement that the economic outlook for 2023 will have a big impact after the decision was made not to sell existing stock of Yeezy (the artist’s brand in collaboration with Adidas), this is for the company could cost you about $500 million in operating profit.
According to Bjorn Gulden, CEO of Adidas, “The numbers speak for themselves, currently we don’t perform the way we should. 2023 will be a year of transition for laying the foundations To be a growing and profitable company again, we have to put everything together, but I am sure that over time we will make Adidas shine again and we need time,” he said.
For his part, the rapper according to Forbes magazine His net worth is just over $3 billion.most of his fortune comes from associations with big and important brands in the apparel and footwear industry, for example, the Yeezy brand made 11% of the profits, while his partnership with Adidas alone was worth $4.3 billion.
However, Adidas said it expects a one-off cost of $213 million in operating profit. Despite the termination of the association, the German company has indicated that much more profitable growth is expected by 2024.
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Source: La Opinion
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