Kanye West’s Adidas Exit Leads To Catastrophic Multi-Million Dollar Loss

Kanye West is undoubtedly one of the biggest names in the music industry and is also a smart businessman. Ye’s accolades simply speak for themselves. That being said, Adidas cut him off last year after a lot of controversy surrounding the rapper. Now it seems Adidas is expected to suffer a huge loss after dropping Kanye West.

Last year, Kanye West made headlines for all the wrong reasons after he wore a ‘White Lives Matter’ t-shirt during his Yeezy fashion show. Not only that, he came under fire for his recent anti-Semitic remarks. Ye stated that he’ll go “Death Con 3 On Jewish People. He also called POTUS Joe Biden a r***** for not listening to Elon Musk.

Due to this, Adidas officially cut ties with Kanye West. As previously reported, Adidas is expected to lose $1.3 billion in sales for 2023. According to CNBC, Adidas has reported a significant financial setback, with an operating loss of approximately $760 million in the fourth quarter.

The net loss is estimated to be around $500 million, and shareholders are expected to see a reduction in dividends from $3.50 to approximately $0.80. The company has projected a net loss of $700 million for the year, marking its first annual loss in 31 years.

This is pretty worrying for Adidas, as trends and brand perception heavily influence the sportswear and sneaker industry. For them to still stay competitive, Adidas will need to reassess its strategy and find ways to maintain a relevant and appealing image. However, it should be noted that the current operating losses include $500 million worth of unsold Yeezy shoes.

Are you surprised that Adidas will suffer such significant losses after Kanye West’s exit? Do you think they did the right thing by dropping him? Sound off in the comments!