Adidas appears to have made a wise decision to re-engage with Kanye West and continue selling his Yeezy shoes, as the sportswear giant revealed preliminary earnings for the third quarter of 2023, with Yeezy sales alone generating approximately $158.5 million. This decision to resume Yeezy sales has significantly improved the company’s financial outlook, reducing the projected operating loss for 2023 from $474 million to about $106 million. Adidas has not only benefited from Yeezy sales but also seen its core business outperform expectations.
As a result, Adidas shares have risen by approximately 34% since the beginning of the year. This marks a stark turnaround from the situation in which Adidas found itself when it severed ties with Kanye West due to a series of antisemitic remarks about a year ago. However, the company’s decision to re-release Yeezys in May to distributors has proven to be financially rewarding. West still receives royalties from each sale, and Adidas is committed to donating a portion of the proceeds to various Jewish organizations and charities, as previously agreed upon.
A fuller financial picture of the impact of Kanye West on Adidas and the company’s financial status will be revealed when the complete third-quarter earnings report is disclosed next month. Adidas CEO Bjørn Gulden has recognized Kanye West as one of the world’s most creative individuals, particularly in the realms of music and street culture, despite West’s past controversial remarks. He has since apologized for his earlier statements and believes that West didn’t intend to come across as he did.
The recent success of the Yeezy line, driven by their collaboration, has provided a much-needed boost to Adidas, showing that the business partnership has rekindled a fruitful relationship. The Yeezy brand has continued to attract consumers, demonstrating its resilience in the market.
Adidas’s financial turnaround and impressive earnings in Q3 serve as a testament to the brand’s enduring appeal and its ability to navigate the complexities of celebrity collaborations while remaining sensitive to social concerns. The Yeezy line’s re-emergence in the market has breathed new life into Adidas’ financial health, signaling a bright future ahead.
To follow “Kanye West” Click below:
Written by
Derek Chan – Editor
