Adidas CEO Says Cutting Ties with Kanye West is Hurting Adidas Sales in North America


Adidas announced in March that it expected an operational loss of $728 million. However, on May 5, the company announced an 8% gain in shares, the biggest level since August 2022. The increase comes after sales were expected to fall by 4% but instead fell by 1%, according to Reuters.

Equity research analyst at Quilter Cheviot, Mamta Valechha, told Reuters that Adidas is managing the expectations of investors. “They are going in the right direction – China is recovering, inventories are still too high, but at least sequentially down,” she said.

Despite Adidas’ improvements, the BBC reports that the company’s sales in North America have dropped by 20% as a result of its breakup with Kanye West. Bjrn Gulden, CEO of Adidas, says that severing ties with Kanye West is “hurting us.”

Adidas severed ties with the rapper, now known as Ye, in 2022 after he made a series of antisemitic remarks.

“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a statement. “Ye’s recent comments and actions have been unacceptable, hateful, and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect, and fairness.”

Both sides suffered financial losses, with Adidas losing $540 million in the last quarter of 2022 as a result of West’s unsold Yeezy items. Ye, on the other hand, has lost his billionaire title, with his net worth falling from $1.3 billion to $400 million.

His deal with Adidas accounted for $1.5 billion of his net worth. “With that gone, Ye is no longer a billionaire,” Forbes wrote when the deal was canceled. “It caps a stunning, self-induced downfall for one of the brashest and most volatile personalities to have graced Forbes’ pages.”

According to Forbes’ most recent net worth assessment, West, who now goes by the moniker Ye, had his net worth increase by $2 million in a month. His fortune increased from $398 million on March 23, 2023 to $400 million on April 19, 2023. According to Billionaires Africa, he saw a brief $2 million drop in his fortune.

According to Forbes, his net worth is currently estimated to be $400 million, which includes his real estate holdings, cash, a music archive, and a 5% ownership in Skims, the shapewear firm created by his ex-wife Kim Kardashian.

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