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Adidas to Sell Yeezy-Based Designs Despite Kanye West Split

  • Gap also ended its deal with Ye, removing his merchandise from its stores.
  • Foot Locker pulled all Yeezy brand footwear from its 2,799 brick-and-mortar stores in October.
Adidas Yeezy shoes on a shelf.
Shutterstock

Adidas will sell shoes derived from Yeezy designs — despite cutting ties with Ye last month. 

“We own all the IP, we own all the designs, we own all the versions and new colorways, so it’s our IP, it’s our product,” Adidas finance chief Harm Ohlmeyer told the Wall Street Journal. 

Yeezy brand products generated $1.7 billion in sales in 2021 — roughly 8% of Adidas’ revenue. 

In October, Adidas ended its relationship with Ye — formerly Kanye West — after the rapper and designer made antisemitic comments on social media platforms.

  • Gap also ended its deal with Ye, removing his merchandise from its stores and shutting down YeezyGap.com.
  • Foot Locker pulled all Yeezy brand footwear from its 2,799 brick-and-mortar stores  in October. 
  • NBA guard Jaylen Brown and NFL defensive lineman Aaron Donald cut ties with Ye’s sports marketing agency, Donda Sports.

Germany-based Adidas first partnered with Ye in 2013.

Another Cut

Adidas has slashed its full-year net income forecast to roughly $251.56 million, down from previous estimates of $501.3 million due to the termination of the Yeezy brand partnership. 

The company generated $6.4 billion in Q3 2022 revenue, an 11% increase year-over-year, driven by double-digit growth in its football and running segments. Its net income from continuing operations reached $66 million in Q3 2022, compared to $480 million in Q3 2021.

Adidas is expected to hire outgoing Puma CEO Bjørn Gulden, who will leave his post at the end of the year. Gulden will replace Adidas CEO Kasper Rørsted.

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