• Loading stock data...
Wednesday, June 25, 2025

Adidas and Ye Officially Finalize Their Divorce

  • The company and rapper reached a settlement that ends their partnership.
  • Adidas is rebounding from cutting ties with its most lucrative shoe line.
Oct 26, 2022; San Francisco, CA, USA; A detailed view of Adidas Yeezy Boost 350 V2 "Bred" shoes worn by Arizona State Sun Devils coach Bobby Hurley during Pac-12 Media Day at Pac-12 Network Studios.
Kirby Lee-Imagn Images

Adidas reached an out-of-court settlement with rapper Ye that officially ends their partnership, the company said on its earnings call Tuesday. 

“There [aren’t] any more open issues, and there is no … money going either way, and we both move on,” CEO Bjørn Gulden said on the call. “There were tensions on many issues, and … when you put the claims on the right side and you put the claims on the left side, both parties said we don’t need to fight anymore and withdrew all the claims.”

The German sportswear giant split with Ye, formerly known as Kanye West, in October 2022 following antisemitic comments. Unfurling the partnership been a multifaceted headache for the company: Adidas lost more than $600 million in sales in the quarter it halted the Yeezy shoe line, faced a lawsuit from investors who claimed the company didn’t warn them about Ye’s problematic behavior, and had to figure out what to do with all the shoes.

After posting its first annual loss since 1992 in March, things are looking up for the retailer. Adidas posted third-quarter earnings earlier than initially scheduled on Oct. 15, and in its full earnings released Tuesday, the brand said there was strong growth across most regions, reflecting that Gulden’s revival plan is bearing fruit.

“The third quarter was a very strong quarter for us and again better than expected,” Gulden said in a statement. “14% underlying growth for the Adidas brand, a very healthy gross margin above 51% and an operating profit of €598 million [about $644 million] are numbers that we are very happy with and proof that we are moving in the right direction. I am especially proud that we are growing in all regions, in all channels and now also in all product divisions.”

Adidas’ Q3 revenues grew 7% to €6.438 billion, or around $7 billion, from the prior year. Excluding Yeezy sales, revenue increased 14% during the quarter. Footwear revenues increased 14% (accounting for the impact of foreign currency exchange rates), led by strong double-digit growth in Originals, the company said. 

Kanye West during Super Bowl LVI at SoFi Stadium, 2022. Credit: Mark J. Rebilas-Imagn Images

Adidas said its gross margin of 51.3% would have been even higher without the Yeezy product. “This year’s significantly smaller and less profitable Yeezy business had a negative impact on the gross margin,” the company said. (Gross margin is the percentage of the selling price that is profit.) Adidas also said the sale of parts of remaining Yeezy inventory generated revenues of around €200 million in the quarter, significantly below Yeezy sales in the prior year (around €350 million in Q3 2023).

Adidas shares were up less than a percentage point Tuesday morning, and are up 13% year-to-date.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Dec 24, 2022; Cleveland, Ohio, USA; Cleveland Browns quarterback Deshaun Watson (4) warms up before the game between the Browns and the New Orleans Saints at FirstEnergy Stadium

Unearthed NFL Arbitration Ruling Raises More Questions Than Answers

The NFL was cleared of collusion, but new questions have emerged.
exclusive

Fever and Bonner Heading for a Breakup? Here’s What We Know

The Fever are exploring options as DeWanna Bonner seeks a fresh start.
Mar 11, 2025; New Orleans, Louisiana, USA; New Orleans Pelicans guard CJ McCollum (3) reacts after a three-point basket against the Los Angeles Clippers during the fourth quarter at Smoothie King Center.

Wizards Acquire CJ McCollum to Set Up $100M in 2026 Cap Space

About $110 million will come off the Wizards’ books next year.
Apr 24, 2025; Inglewood, California, USA; Los Angeles Clippers guard James Harden (1) controls the ball against the Denver Nuggets during the second half of game three in the first round for the 2024 NBA Playoffs at Intuit Dome.

James Harden Sued for Negligence in Sexual Assault Case

Harden hosted the party where the alleged incident happened.

Featured Today

Mar 15, 2025; Fort Worth, TX, USA; UAB Blazers forward Yaxel Lendeborg (3) dribbles the ball upcourt against the North Texas Mean Green during the first half at Dickies Arena

NIL Is Shrinking the Pool of NBA Draft Entrants

Agents are now advising many players to stay in school.
Apr 24, 2025; Green Bay, WI, USA; Penn State Nittany Lions defensive end Abdul Carter on the red carpet before the 2025 NFL Draft at Lambeau Field
June 21, 2025

‘More Is More’: The Elite Luxury Jewelers Decking Out Athletes

Meet the elite group of luxury designers crafting the biggest statement pieces.
Dec 5, 2024; Miami, FL, USA; FIFA president Gianni Infantino presents the FIFA Club World Cup trophy during the Club Word Cup draw at Telemundo Studios.
June 15, 2025

Revamped Club World Cup Is FIFA’s Billion-Dollar Gamble

The revamped soccer event debuts amid controversy.
Jun 10, 2025; Nashville, Tennessee, USA; United States head coach Mauricio Pochettino stands during the anthem against the Switzerland during the first at Geodis Park
June 14, 2025

Gold Cup Is Complicated for USMNT—but U.S. Soccer Has Its Eyes on..

Uncertain tournament success isn’t fazing forward-looking U.S. soccer.
Jun 15, 2025; Oakmont, Pennsylvania, USA; JJ Spaun putts on the 18th green to win during the final round of the U.S. Open golf tournament.

‘Pandemonium’: Putter Maker Sees Sales Surge After JJ Spaun’s U.S. Open Win

The company behind Spaun’s putter is already in talks with his people.
Tom's Watch Bar
June 12, 2025

How the Pacers and Caitlin Clark Boosted One Bar’s Bottom Line

Tom’s Watch Bar hosted John Haliburton for at least five games.
June 13, 2025

U.S. Open Merch Pops Thanks to Oakmont’s Squirrel, Viral TikToks

There are more than 400,000 pieces of merchandise available at Oakmont.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
June 12, 2025

U.S. Open Cashing In on Signature Cocktail Trend With Lemon Wedge

Last year, the whiskey cocktail was served more than 50,000 times.
Nike store
June 5, 2025

Which Sportswear Retailers Are Best Positioned to Raise Prices?

Why On can more easily raise prices than Nike.
Mar 23, 2024; New York, New York, USA; Sneakers worn by New York Knicks guard Jalen Brunson (11) during warmups prior to the game against the Brooklyn Nets at Madison Square Garden.
May 21, 2025

Nike to Raise Prices on Sneakers Above $100

Kids products and Air Force 1s won’t be affected.
Arc'teryx
May 20, 2025

Expensive Outdoor Gear Is Bright Spot Amid Tariff Turmoil

Amer Sports says tariffs will have a “negligible” impact on its results.