We’ve officially kickstarted a year without Adidas Yeezy in the picture. Back in October 2022, Adidas fully ended its collaboration with Kanye West. And then, the Three Stripes announced that they will be selling unbranded Yeezys. In other words, Yeezy-LESS Yeezys. But, although the decision was necessary, it came at a price. The Adidas losses were quite substantial, to say the least. So, this has people wondering, how much did Adidas lose from Yeezy?
Here’s the thing. Although the Adidas x Yeezy partnership made Adidas a SH!T-TON of money, it also cost them. You see, the biggest lure and motive that made Kanye leave Nike for Adidas was MONEY. Kanye earned 10% in royalties from Adidas plus had full creative control over the line Yeezys. Now, 10% royalties over YEEZY sneakers are a lot of money.
Apparently, despite the Adidas losses, this will also save Adidas around $300 million in royalties. But, if the royalties alone brought in THAT much money into Ye’s pocket; how much did Adidas make? And, how much did Adidas lose from Yeezy leaving the firm? Let’s dive into it!
HOW MUCH DID ADIDAS LOSE FROM YEEZY?
So, it’s pretty obvious that Yeezys were the KEY Adidas product that kept the brand remotely relatable. Of course, there are other great Adidas collaborations. But, none of them came close to the hype and resale value of Yeezy sneakers.
There’s also the fact that the Yeezy line generated around $2 BILLION in sales for Adidas in 2021 – 2022. This was around 8% of the company’s total sales. Therefore, ending the Adidas x Yeezy partnership definitely cost a LOT of money. How much did Adidas lose from Yeezy exactly?
Around more than $250 million in profit, $500 million in lost revenue, and an 80% drop in stocks!
But, there’s more. Following the singer’s anti-Semitic comments, Adidas decided to take the financial damage and end the partnership. However, there was more than just financial tolls. There’s the factor of labor. With ongoing inflation and trying to survive a recession; job cuts are very frequent.
Yet, this was not inflation nor recession cut. It was a Yeezy cut. How much did Adidas lose from Yeezy when it came to labor? Around 142 people lost their jobs after the breakup.
So, what does Adidas have to say about this all? The Three Stripes recently lowered its 2023 guidance. It included all the potential losses following the end of Yeezy. Of course, Adidas has a tough job cut out for it trying to sell the remaining Yeezy stock. How much did Adidas lose from Yeezy according to the guidance report?
- Lowered revenue by about $1.28 billion and operating profit by $500+ million if they couldn’t sell existing Yeezy stock
- One-off costs of up to €200 million if they write off the existing Yeezy inventory
- If the previous circumstances happen, Adidas will lose €700 million in 2023
In a nutshell, how much did Adidas lose from Yeezy? Well… A LOT. And, if they’re going to salvage whatever they have left and gauge the Adidas losses; they need to make a decision. Are they going to repurpose the existing Yeezy stock or will they write off any Yeezy-related inventory? We’ll see in the coming months.
As for Ye, how much did Kanye lose from Adidas? Also A LOT. His own net worth reportedly dropped from over $1 billion to $400 million after the breakup. No longer the Christian Genius Billionaire… This is because Adidas was not the only brand to drop Ye. In fact, the #cancelKanye culture is still going to this day – although Rihanna might have changed that now!
Either way, we’ll keep you posted! So, make sure YOU keep it locked on our blog and Instagram @aiobot for the latest updates! Will we have more new Yeezys coming, or are Yeezys dead forever? Let’s find out!