Former billionaire Ye, also known as Kanye West, is finally dealing with the consequences of his actions after he made string of anti-Semitic remarks last month. His lucrative partnership with Adidas came to an end as he continued to double down on his uninformed assertions, but the colossal clothing brand has revealed that they still plan on selling Ye’s designs but without the Yeezy label.
The company claims to be the sole owner of all Yeezy designs and they will now sell the product branded as Adidas. This seemingly minor change will save them approximately $300 million in royalty payments and marketing fees!
“Going forward, we will leverage the existing inventory with the exact plans being developed as we speak,” Adidas finance chief Harm Ohlmeyer said earlier today.
According to Morgan Stanley, Yeezy products accounted for nearly $2 billion in Adidas sales last year, which made up 8% of the company’s total sales. Aside from attracting new clients who then purchased additional Adidas goods, the line also helped Adidas secure shelf space at major retailers. The company also reveled that ending the collaboration cost them more than $250 million in profit and $500 million in lost revenue.
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