Adidas Loses Billions 💸
Adidas Loses Billions 💸
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Adidas Loses Billions 💸

Alex L
1 year ago

After the split between Adidas and Kanye West in October of 2022, the artist publicly mentioned that he lost over $1.5 billion dollars. GAP, Balenciaga , and Vogue followed suit and terminated their partnerships with him causing even more damage.

Kanye lost a multi-billion dollar contract over a tweet. However, Adidas lost their most successful collaborator and over a billion dollars in revenue in order to maintain their reputation.

 

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(Photo credits to Alex Haney)

 

Adidas just announced in a press release that the company is projected to lose €1.2 billion if they do not move their remaining Yeezy inventory. Also if Adidas does not repurpose their remaining Yeezy products, this would result in a write off of their remaining Yeezy inventory and lower the company's operating profit by €500 million this year. 

 

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The unfortunate news does not get any better as the brand also struggled to hit their target goal with their IVY Park line by $210 million. Within the past 5 of 6 drops of the IVY Park line, it was estimated that nearly half of the merchandise produced did not sell.

 

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The question moving forward is, how does Adidas plan to bounce back from this major set back? To find out what happens next and the latest sneaker news follow @swiftsole.

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