“completely unacceptable.”
Adidas’ split from rapper Ye could cost the company some big bucks. The German sportswear company said Thursday it could lose around $1.3 billion in revenue in 2023 if it’s unable to sell its existing Yeezy inventory, while operating profit would fall by about $535 million. Adidas cut ties with Ye last October because of his homophobic remarks on social media and ended the production of Yeezy-branded products. At the time, the company called Ye’s comments “completely unacceptable.”
Adidas is currently deciding what to do with its existing Yeezy stock and has warned that its financial guidance for 2023 “accounts for the significant adverse impact” of not selling the merchandise. If the company can’t repurpose the products and writes off existing Yeezy inventory, it faces an operating loss of nearly $750 million in 2023. “The numbers speak for themselves,” Adidas CEO Bjørn Gulden said in a statement. “We are currently not performing the way we should.”
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