Want to see the power of Hip-Hop?
Adidas has officially credited the downturn of their profits to then severing ties with Kanye West.
According to MarketWatch, on Tuesday, Feb. 21, S&P Global Ratings lowered its long- and short-term debt ratings on the sneaker brand.
In 2021, the Yeezy deal made up 5% of the company’s total sales. This includes sneakers, clothing, and sporting goods. The company had also expected Yeezy to make up 7% of the sales for 2022.
With the severing of ties, the stock dropped more and Adidas knew it.
On Thursday, Feb. 9, Adidas sent out a profit warning saying that 2023’s sales would be in a slump because of the split. The German brand may be in the hole for about $1.3 billion, a fall of about 7% to 9%.
It seems they are reaching out to Yeezy in hopes to restore the deal.
As reported by AllHipHop.com, Kanye West was dropped as a collaborator with Adidas because of his statements against George Floyd and the Black Lives Matter movement, and various antisemitic comments toward the Jewish Community.
This ending of the relationship substantially impacted West’s net worth, reducing him from billionaire to about $400 millionaire.
Now, people are cracking up and mocking the brand for regretting the haste.
“Adidas HQ crawling back to Kanye after losing billions,” one person wrote.
Another wrote, “Ye (fka Kanye West) & Adidas have reportedly reached an agreement to sell all remaining Yeezy inventory.”
“If we learn anything from this Kanye West & Adidas thing is cancel culture was never real,” someone stated.