Adidas has announced that they will continue to sell Yeezys under different branding as early as next year.
Adidas has been a partner with Ye (Kaney West) since 2013, and the relationship was financially successful. However, recent controversies surrounding Ye’s antisemitic comments and public outcry led many companies like Adidas to completely sever ties with the rapper.
Ye and Adidas management have fought before over many issues. Back in June, Adidas released a product that resembled the Yeezy Slide. Ye called them “a fake YEEZY made by Adidas themselves.”
On Instagram, Ye had written a response to the Adidas Adilette slides: “I’m not standing for this blatant copying no more.”
Ye also previously called out Adidas for creating “Yeezy Day” without his approval, naming a sneaker without him, and not creating physical stores for Yeezy.
On a Wednesday earnings call, Adidas Chief Financial Officer Harm Ohlmeyer said that “Adidas is the stole owner of all design rights registered to existing product. We intend to make use of these rights as early as 2023.”
It’s possible that the Yeezy slide will be the exception, as Ye owns the patent for them.
Financially, Adidas has taken a hit to the bottom line after ending its partnership with Ye. It forecasted a $247 million hit and the earnings report revealed the results were in-line with the forecast. Annual revenue will also be $502 million lower than expected.
However, Adidas will save about $302 million in 2023 because royalties and marketing costs will no longer to go supporting the Yeezy business.
It’s unclear if Adidas will sell remaining merchandise or get rid of it, with Ohlmeyer saying: “We need to take our time to review what the best options are. When the time is right we will be more concrete.”
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