Adidas shares fell ~1% on Friday after the sportswear manufacturer said it could lose about €1.2B ($1.3B) in revenue in 2023 if it is unable to sell its existing Yeezy items.
Adidas ended its partnership with Yeezy founder Kanye West in October
after the rapper and fashion designer made some antisemitic comments.
- Adidas said it is assessing what to do with its current Yeezy inventory.
- The company added it has already accounted for the impact of not selling it.
- Adidas said its profit would drop by about €500M if the company can’t sell the products.
- According
to Morgan Stanley, Yeezy products generated about $2B in sales for
Adidas in 2021, accounting for about 8% of the company’s total sales.
- Adidas began its collaboration with West in February 2015.
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