German sports goods maker Adidas could face losses this year following its decision to part ways with rapper Kanye West over his anti-Semitism, DPA reported.
If Adidas abandons merchandise created in collaboration with the artist, who changed his name to Ye in 2021, and stops selling products from the Yeezy line, it could realize an operating loss of 700 million euros, they announced from the company.
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The German corporation terminated its partnership with rapper and designer West over his repeated anti-Semitic comments.
Its Yeezy fashion line contributed 1.2 billion euros to sales and 500 million euros to operating profit. Without it, the operating profit will be around zero.
Photo: Getty Images
If it stops selling these products, it will reduce financial results by another 500 million euros, and there will also be one-off costs of up to 200 million euros.
“The numbers speak for themselves. At the moment we are not performing as well as we should,” said Adidas CEO Bjorn Gulden. He also noted that 2023 will be a transition year in which the company becomes growing and profitable again.
