update desk

The cost of hate: Adidas stuck with $530 million of Ye merch

The German shoe manufacturer plans to offer deep discounts on disgraced rapper’s products

Kanye ("Ye") West. Source: Twitter.
Kanye ("Ye") West. Source: Twitter.

Hip-hop mogul Ye, formerly known as Kanye West, is not the only one taking a huge financial hit from the fallout of his series of antisemitic remarks. 

Following the plunge in the rapper’s estimated net worth from more than a billion to $400 million, a recent analysis by the Financial Times shows that Ye’s former partner Adidas also faces severe financial consequences.

Adidas has $530 million worth of Ye merchandise, which it hopes to unload at a steep discount. How the shoe company will manage that remains a mystery. Adidas employees have worried for years that the shoe giant was too reliant on the Yeezy brand.

The company previously announced it expected to lose $246 million in profit this year due to canceling the arrangement with Ye. Yeezy provided Adidas with an estimated $1.7 billion in annual revenue in 2021, or 8% of the total.

Adidas also revealed it had opened an investigation into Ye after reports surfaced that he had acted inappropriately with employees, showing them explicit photos of his ex-wife Kim Kardashian. 

Ye began his series of antisemitic remarks in early October and has since lost sponsorships and partnerships including with Vogue, Balenciaga, Foot Locker, Gap and J.P. Morgan.

You have read 3 articles this month.
Register to receive full access to JNS.

Just before you scroll on...

Israel is at war. JNS is combating the stream of misinformation on Israel with real, honest and factual reporting. In order to deliver this in-depth, unbiased coverage of Israel and the Jewish world, we rely on readers like you. The support you provide allows our journalists to deliver the truth, free from bias and hidden agendas. Can we count on your support? Every contribution, big or small, helps JNS.org remain a trusted source of news you can rely on.

Become a part of our mission by donating today
Topics
Comments
Thank you. You are a loyal JNS Reader.
You have read more than 10 articles this month.
Please register for full access to continue reading and post comments.
Never miss a thing
Get the best stories faster with JNS breaking news updates