Much chatter has been made about Kanye West and the massive retail brand Adidas. I have seen it over the last couple of days and decided to address it, even though I believe it to be highly unlikely. Adidas’s stock plummeted recently because of the highly publicized failed business deal with Kanye, according to a recent report by Forbes.
The company, which really came to prominence thanks to Run-DMC, told the financial publication he will likely lose “hundreds of millions of dollars this year” because of the failed partnership. They were forced to break off from the rap star and stop creation of the popular Yeezy brand. Now, they have a bunch of Yeezy stuff and they don’t seem to have a way to offload it. Right now, they are between scrapping the gear totally or selling it.
Adidas said it expects to lose around $1.3 billion in revenue and roughly $535 million in operating profit this year if it cannot sell the stock.
Adidas also forecast falling sales and one-off costs of roughly $214 million this year, which could push the firm to an operating loss of nearly $750 million for 2023.
Chief executive Bjørn Gulden said 2023 will be a “year of transition to set the base to again be a growing and profitable company.”
Adidas has “all the ingredients to be successful,” Gulden stressed, but just needs “some time” to rebuild.
Forbes
Now, on to the rumors. I have no idea where this even started, but people are saying they may be getting back with Kanye because of the loss in revenue. I have seen no evidence they are actually talking or even thinking about working with Ye again. The only thing I see is that they may actually repurpose the Yeezy kicks and that’s nothing new. They have to do something with all those kicks. Or they could give them to young kids. Only fake blogs and YouTube pages are stirring up this pot.
I wish both parties well. Let us do a throwback.
