Adidas In The Hole For Billions
The athleisure brand was once riding high off of the partnerships they made with famous folks like Beyoncé, Pharrell, and Kye West but now, it seems like those days of everyone profiting are no longer happening.
While celebs like Beyoncé are profiting big time from pairing themselves up with Adidas, the company itself is suffering. In their reports, the company has shared that they are on track to lose $1.3 billion in sales in 2023.
Why the big loss? They are blaming their collaboration with Ye and the fact that it fell through big time. The company claims they are having a tough time selling the stock of Yeezy shoes and clothes.
The brand cut ties with Ye at the end of last year when the rapper began using his social media to spew antisemitic hate and acting erratically on multiple social media platforms.
Adidas Planned On Profiting Off Of Yeezy
Even though they cut ties with Ye, the company had a plan in place to profit off the rapper’s leftover designs with the Yeezy logo removed. The problem there is that the clothes don’t have any value to them without the “New Slaves” rapper’s name attached to it.
Plus, let’s be real, without the Yeezy logo, the clothes look like they have been worn and torn per the style. Some of them are just straight up hoodies tt need some kind of embellishment to be wearable.
So, yeah, we can see why no one is buying the label-less defunct Yeezy throwaways. The company is claiming that if they do nothing it will tact on loss to their overall billions.
Adidas Can lose An Extra $534 Million
The brand has to make the old Ye stuff work because a $534 million loss is on the table and on top of the billions they are already projecting as a loss, come on, you do the math. The CEO of Adidas commented on the state of the brand at the moment, and he knows it looks horrible.
Bjørn Gulden said, “The numbers speak for themselves. We are currently not performing the way we should.” He noted that the company plans to use 2023 to transition from whatever the hell is going on here to something that isn’t this.
Ye isn’t the only person low-key screwing the brand over. It was also recently reported that Beyoncé’s Ivy Park brand is struggling as well. The dinger herself is doing great, she negotiated a great deal to be paid millions yearly as long as the brands are collaborating.
Unfortunately, the gear she is totting isn’t really selling. Fans have complained in the past about the brand not being available anywhere, allegedly always sold out. The Wallstreet Journal posted an expose on the brand and called out Bey for raking in $20 million.
What did Adidas make? Well, they lost $40 million actually. Furthermore, they were expecting to make $250 million in 2022. Apparently overall, the brand lost a shocking $200 million messing around with Bey and the Beehive.
Where are they profiting?