Billion crash for Adidas: Kanye West products break away – stock price drops significantly

The end of the cooperation with scandal rapper Kanye West has financial consequences for Adidas.

The loss of sales for 2023 is estimated at more than one billion.

Herzogenaurach – Adidas had maintained its cooperation with the US rapper Kanye West for a long time, despite statements by the musician, some of which were extremely controversial.

Too long, say critics.

Even West himself joked that Adidas would never sack him.

But that is exactly what the company from Herzogenaurach finally did at the end of 2022. But now it is also clear why Adidas avoided this step for so long - financially, the end of the cooperation is very painful for the sporting goods manufacturer.

Adidas with a gloomy business forecast: stock price drops significantly

At the end of 2023, Adidas ended its collaboration with Kanye West, who had pushed himself further and further out with anti-Semitic and racist statements.

On Thursday evening, February 9th, Adidas announced that lost sales of the Yeezy product line designed with West could result in a loss of up to 700 million euros in operating profit.

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Just a few years ago, people around the world were queuing to get Yeezy products from the collaboration between Adidas and US rapper Kanye West.

Because of the musician's highly controversial statements, Adidas has now ended the partnership - with painful economic consequences.

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This had a sudden impact on the Adidas stock price.

If the company's share value was EUR 156 on Thursday, it was only EUR 139 on Friday morning, February 10.

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Adidas: Loss of sales of more than one billion euros

The Yeezy product line mainly consisted of very expensive goods.

Yeezy shoes sometimes cost several hundred euros in stores and were in great demand.

The loss of sales for 2023 is estimated at 1.2 billion euros.

Adidas estimates the loss in operating profit from the discontinuation of the Yeezy series at 500 million euros.

The problems surrounding Kanye West had already burdened Adidas before the separation from the scandalous rapper.

The operating result was only 669 million euros after almost two billion euros in 2021. However, the idle business in Russia since the Ukraine war and the ongoing corona problem in China, which is causing many shops to remain closed, are also partly responsible for this must.

The new Adidas CEO Björn Gulden wants to present his final figures for the past year on March 8th.

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