Adidas has been under severe financial stress since parting ways with Kanye West. According to the company’s CEO Bjorn Gulden, the athletic brand is projected to lose nearly 1.3 billion dollars in sales this year, CNBC reports. In a statement released on February 9, the company notes that the significant dip in sales is linked to its recent separation from the Chicago-bred mogul after being unable to sell off its remaining Yeezy apparel.
The company could also lose an additional $534 million if it cannot repurpose the remaining Yeezy stash, the statement read.
“The numbers speak for themselves. We are currently not performing the way we should,” Gulden said. He also noted that 2023 would be a “year of transition” for the company.
In 2022, Adidas parted ways with the controversial rap star after several anti-semitic comments that he made, as well as the several incidents that followed — including making a pitstop on InfoWars to chat with Alex Jones about his admiration for Hitler and Nazism.
However, the brand shared it would still use its designs without the Yeezy label. So far, they haven’t found much success.
On the other hand, Kanye hasn’t had the best luck either. The former billionaire’s recent antics were hilariously parodied in an episode of South Park. He’s also being investigated for battery after snatching a woman’s phone last month.
All this comes after it was reported that Adidas is taking a $200 million loss on Beyoncé’s Ivy Park.