Adidas announcement to end its partnership with Kayne West dating back to 2013 on her antisemitic remark. It will shave of $1.5 billion annual sales from its ye product line.
The Yeezy brand, named after Kayne West is estimated to generate around €1.5 billion in annual sales, will leave a hole in Adidas’ top and bottom line. Because of this the company is expecting a hit of $250 million on its 2022 net profit.
Adidas was already losing sales this move was reluctantly taken against Kayne West who continued issuing anti-Semitic statements. The company had earlier informed its stakeholder that the 2022 sales would be down by $500 million and further dent of $1.5 billion would badly impact its share value company The dwindling sales in China and its surrounding markets was the reason to downgrade its sales. Adidas share price has dipped by nearly 70 percent from the peak it attained in August 2021. Rorsted its current chief operating officer is stepping down at the end of this year. The company is in search for new CEO who will have an uphill task to manage the company in torrid times. Currently its share price is even below the value it had during covid-19 peak.
