German multinational clothing and footwear brand, Adidas, has revealed that it is set to suffer a huge annual loss as a result of its decision to discontinue all of Kanye West’s Yeezy-branded clothing and shoes.
The loss would be the brand’s first annual loss in more than 30 years.
According to CNN, Adidas shared on Wednesday that it is facing an operating loss of $736 million because of a potential $527 million hit related to unsold Yeezy stock.
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It also revealed that its annual revenue could plunge as much as $1.27 billion this year, also because of the split.
Shares in the company fell by 2.2% on Wednesday morning after it published its 2022 results and 2023 outlook.
The company said it could perform better if it “repurposes” some of its Yeezy products. It did not elaborate on what the repurposing would entail.
Adidas parted ways with West and his brand, Yeezy, after nine lucrative years in business back in October 2022 after he made a series of antisemitic remarks on social media and in interviews.
THE WHISTLER reported when West shared that he had lost more than $2 billion in one day following the reactions that trailed his remarks
The rapper, whose deal with Adidas provided $1.5bn of his net worth, had boasted during a Drink Champs podcast that “I can say antisemitic shit… and Adidas cannot drop me.”
The rapper dropped off the Forbes billionaires list after several companies, including Adidas and Gap, disassociated themselves from him.