Nearing $2 billion in yearly sales, cutting Yeezy from adidas is going to cost them big time.
In the fallout following Ye’s mega-press run that saw the controversial artist, designer, and former billionaire spew out hateful and conspiratorial rhetoric regarding those of the Jewish faith, any brand that he had a connection to rightfully cut ties as quickly as possible sans adidas. His biggest partners were largely responsible for his billionaire status and remained silent as a brand even with public outcry and employees stating their displeasure with the non-response from The Three Stripes. The explanation for why it took so long to drop Ye and his Yeezy brand has finally been revealed courtesy of Business Insider which reports that executives sought counsel from two law firms before swiftly cutting ties after receiving feedback.
All in all, it took roughly two minutes over a conference call for The Three Stripes to pull the plug officially even with the negative financial implications that followed suit. Stock prices for adidas A.G. fell roughly 5% based on the announcement and the German sportswear giant is expected to lose close to $250 million dollars in profits just in 2022 alone. While the Yeezy lines netted adidas anywhere from 4-8% of their yearly revenue, it was one of their biggest profit makers at over 40% according to a Morgan Stanley analyst. Going forward, adidas is going to have to thrust some of its creators, like Pharrell Williams or Bad Bunny, into the spotlight to help recoup from this massive loss.
Going forward, the future of what will happen to popular Yeezy models like the 700, 350, or Foam RNNR is still (technically) up in the air. Some sources have claimed that we’ll see solely adidas-branded iterations of these models, though adidas is expected to expand on their plans going forward on November 9th, 2022 during their earnings call. Keep it locked to our Twitter and the Sole Retriever mobile app to stay updated on the latest news in the adidas and Yeezy saga and more in the sneaker and streetwear world.