Yeezy is a fashion brand founded by Kanye West in 2009. The brand is known for its high-end sneakers, apparel, and accessories. In 2013, Adidas entered into a partnership with Yeezy, and the two companies have released a number of successful products together.
However, in October 2022, Adidas announced that it was ending its partnership with Yeezy. The decision came after West made a number of controversial statements, including antisemitic remarks.
How much did Adidas lose?
The end of the Yeezy partnership has had a significant financial impact on Adidas. In the fourth quarter of 2022, Adidas reported a net loss of 513 million euros ($540 million). This was largely due to the loss of revenue from Yeezy.
Adidas has also projected that it will lose an additional 771 million euros ($800 million) in 2023. This is due to the fact that Adidas still has a significant amount of unsold Yeezy inventory.
Why did Adidas lose so much?
There are a number of reasons why Adidas lost so much money from Yeezy. First, the company had to write off a significant amount of unsold inventory. This is because Yeezy products are typically very limited-edition, and there is a high demand for them. However, when the partnership ended, Adidas was left with a lot of inventory that it could not sell.
Second, the end of the partnership damaged Adidas’ brand reputation. West’s controversial statements made some people question the company’s association with him. This led to a decline in sales of other Adidas products.
What is Adidas doing now?
Adidas is currently trying to sell off its unsold Yeezy inventory. The company is also looking for new partners to help it revive the Yeezy brand.
In the meantime, Adidas is focusing on its other brands, such as Originals and Reebok. The company is also investing in new technologies, such as 3D printing, to create more innovative products.
The end of the Yeezy partnership has been a major setback for Adidas. However, the company is taking steps to mitigate the damage. It is also looking for new ways to grow its business.