In 2023, Adidas, a German sportswear manufacturer, reported its first annual losses in 30 years, totaling 75 million euros. This was primarily attributed to the discontinuation of collaboration with rapper Kanye West. Despite the losses, CEO Bjorn Gulden noted that they were lower than initially anticipated, which was around $250 million. Gulden remains optimistic about the company’s recovery, projecting a return to stability by 2025.
The breakdown in the partnership with Kanye West led to a decrease in revenue for Adidas. However, despite this setback, the company was able to sell a significant portion of Yeezy sneakers, a line developed in collaboration with the musician, generating 750 million euros in revenue. The remaining sneakers will be sold at cost, bringing in an additional 250 million euros. This successful sales strategy helped offset some of the losses incurred from ending the collaboration with West.
In 2022, Kanye West made controversial anti-Semitic statements on social media, which prompted Adidas to sever ties with him. Despite his comments, Adidas decided to part ways with him and now is focusing on recovering from the financial impact of this decision and rebuilding their brand image.
