Kanye West Debacle Leads To Adidas' First Annual Loss In Decades
Kanye West and his Yeezy brand have been having a renaissance as of late. Overall, he is selling his products for just $20, and fans have been scooping up as much merch as possible. However, it has been a long rebuild for Ye, who was dropped by Adidas in the Fall of 2022. After all, he was begging to be let go by the brand. He was unhappy with the way he was being treated, and he was hopeful that his contract would be terminated. Meanwhile, he kept spewing anti-semitic talking points which made him a liability to Adidas' image.
Unfortunately for Adidas, letting Ye walk has come with a plethora of negative affects on their business. For instance, the brand has been posting sales losses every single quarter of 2023. In fact, the brand was forced to sell off close to $1 billion of leftover Yeezy products, just to get by. According to CNN, their latest numbers are pretty devastating. In 2023, the brand finished the year with a $63 million annual net loss. This is their first net loss in decades, and the Yeezy partnership's demise is a huge catalyst.
Adidas is also blaming a large tax bill and poor North American sales for their issues. The brand has struggled in America compared to the rest of the world, and with U.S. inflation on the rise, things have continued to worsen. However, it is expected that things will stabilize for Adidas, moving forward. Only time will tell if they can truly recover.
Let us know what you think about all of this, in the comments section down below. Do you think Adidas would ever take Kanye West back as a means to save face? Additionally, stay tuned to HNHH for the latest news and updates from around the music world. We will continue to keep you informed on all of your favorite artists and their upcoming projects.
