Adidas AG said it plans to make up for most lost Yeezy earnings by selling sneakers of the same design stripped of the branding from rapper & former partner Ye.
The German sportswear maker is working through options for selling the sneakers in 2023 & expects to save about $302 million in royalty payments & marketing fees by going it alone.
Adidas shares rose as much as 4%, bouncing back from earlier losses suffered after it lowered a profitability target for the fourth time this year.
Adidas terminated its partnership with Ye, formerly known as Kanye West, in late October following years of controversial behavior from the rapper & designer that culminated in a recent string of antisemitic statements.
In ending the arrangement, Adidas absorbed a hit to earnings of up to $250 million for the year. Yeezy has accounted for almost half of Adidas’s total profits.
“Let me be clear, we own all the IP, we own all the designs, we own all the versions and new colorways,” Chief Financial Officer Harm Ohlmeyer told reporters Wednesday. “It’s our product. We do not own the Yeezy name.”
Even if Adidas does manage to sell the Yeezy shoes under its own label, some analysts have expressed doubts that it will be able to replicate 1 thing: the price.
#adidas #adidayeezys #itsallaboutthebenjamins #yeezys #kanyewest #yeezyshoes #ye #yeezy #adidadkanyewest #adidasendsdealwithkanyewest #adidasstock #adidasstockprice #movingon #adidaskanyewest #rapper #musicproducer #hiphopproducer #entertainer #fashiondesigner #kimkardashian #drake #candaceowens #georgefloyd #derekchauvin #jews #jewishcommunity #jayz #beyonce #balenciaga #controversy
Source: Bloomberg
Follow Me
}
Comments