Adidas will sell Yeezy designs under a different name following Kanye West controversy, CFO says

Adidas says it still plans to sell Yeezy designs — just with a different name.

The shoe and apparel brand announced its intentions to keep selling Yeezy products — which were created by Ye, formerly known as Kanye West — in a quarterly earnings call Wednesday.

“I can confirm that Adidas is the sole owner of all design rights related to existing product, as well as previous and new colorways under the partnership,” Adidas Chief Financial Officer Harm Ohlmeyer said during the call. “We intend to make use of these rights as early as 2023.”

“Going forward we will leverage the existing inventory with the exact plans being developed as we speak,” Ohlymeyer added.

The announcement comes after Adidas said last month that it would cut ties with the rapper after he made antisemitic remarks. In an Otcober 25 press release, the company said it would “end production of Yeezy branded products and stop all payments to Ye and his companies.”

The Germany-based company said it would be taking a loss as a result of terminating its relationship with Ye and Yeezy branded products.

“This is expected to have a short-term negative impact of up to 250 million euros on the company’s net income in 2022 given the high seasonality of the fourth quarter.” 

However, in Wednesday’s quarterly earnings call, Ohlmeyer said it would make up for those losses by continuing to sell the products without the extra costs that come with a partnership. 

“We will save over 300 million euros related to royalty payments and marketing fees,” he said. “This will help us to compensate the vast majority of the top and the bottom line impact in 2023.”

Ye designed the Yeezy line in a partnership with Adidas that began in 2015 with the Boost 750 shoe. Since his antisemitic comments, the singer has been dropped by several other brands he partnered with, including GAP and Balenciaga.

On Tuesday, Adidas announced it will be led by a new CEO starting next year. The current CEO, Kasper Rorsted, will be succeeded by Puma’s Bjørn Gulden, who is credited with turning around the company and increasing its sales.

Trending News

Several killed in shooting at Jehovah’s Witness hall in Germany, police say

Mexican drug cartel purportedly apologizes for deaths of kidnapped Americans

2 killed at airport during failed heist of $32 million on plane

Harry and Meghan christen daughter

Chaim Topol, Israeli actor best known for “Fiddler on the Roof,” dies at 87

Kanye West

Click Here: parramatta eels jersey

Leave a Reply

Your email address will not be published. Required fields are marked *