Due to Ye’s nine-year partnership, the company anticipates a short-term negative impact on the net income from Q4 sales of up to €250 million. This is because Ye’s hate speech led to the termination of the partnership.
Kanye, also known as Ye, and Adidas have announced that their nine-year partnership will come to an end due to Ye’s alleged use of hate speech and anti-Semitic remarks on Twitter. The company added that it has ceased all payments to the rapper and is ceasing production of Yeezy-branded goods.
Given the high seasonality of the fourth quarter, Adidas claims that “this is expected to have a short-term negative impact on the company’s net income of up to €250 million in 2022.” Ye’s account has also been suspended by Instagram and Twitter due to his anti-Semitic remarks, and his other business partnerships have also come under fire.
BREAKING: Adidas shares down over 4% as company terminates partnership with Kanye West
— The Spectator Index (@spectatorindex) October 25, 2022
Adidas has worked with Ye since signing his brand away from Nike, its main rival, in 2013, describing the relationship as “the most significant alliance ever forged between a non-athlete and an athletic brand.”
Read More:
- In His First Speech As Prime Minister, Rishi Sunak Promises To Rectify The Mistakes
- A missing Princeton University student has been found dead, officials say
However, the ‘partnership came under review’ in the first half of October when Ye attended Paris Fashion Week while sporting a “White Lives Matter” t-shirt and claimed the business had “stolen” his designs.
After George Floyd was killed by a police officer in Minneapolis in 2020, the phrase “Black Lives Matter” became well-known. It later developed into a political and social movement to draw attention to the racism that black people experience, particularly police brutality and racially motivated violence.
In a statement, the German sportswear company added, “Adidas does not tolerate antisemitism and any other type of hate speech. He has recently made remarks and taken actions that are unacceptable, dangerous, and against the company’s values of inclusion, respect, and fairness.
“Following careful consideration, the company has decided to immediately sever its relationship with Ye, halt the production of goods bearing the Yeezy brand, and stop all payments to Ye and his businesses. adidas will immediately cease operating its Adidas Yeezy business, the statement added.
adidas has frequently claimed that the Yeezy brand collaboration with Ye was one of the most successful in the company’s history during the nearly ten-year partnership between West and Adidas.
Read More
