A Yeezy write-off could cost Adidas up to $750 million this year
Adidas’ (ADDYY) decision to terminate its contract with Ye, the rapper known as Kanye West, may result in a $750 million loss this year.
On Thursday Adidas revealed that if no inventory from ‘Yeezy’ line of products is repurposed, it will lose up to €1.2 billion (or $1.29 billion) in revenue in 2023.
If Adidas chooses this option, it will also lose €500 million in profit this year and another €200 million in one-time costs, bringing the company’s expected 2023 operating losses to €700 million, or approximately $750 million at current exchange rates.
In an October statement, the company stated. «Ye’s recent comments and actions are unacceptable, hateful, and dangerous, and they go against the company’s values of diversity and inclusion, mutual respect, and fairness. Adidas does not tolerate antisemitism and any other sort of hate speech,”
Adidas shares fell nearly 9% on Thursday.
