How much revenue did Adidas lose from Yeezy deal?

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Adidas Faces Significant Revenue Loss Due to Yeezy Deal Termination

Adidas stands to lose €1.2 billion (approximately RM5.85 billion) in revenue from the unsold apparel and shoes linked to its former partner, Kanye West. This financial impact was disclosed by the sportswear group when it announced its 2022 full-year results earlier this week, following the termination of its lucrative Yeezy partnership.
Estimated Revenue Shortfall

The potential revenue loss is pegged at €1.2 billion, a figure that underscores the commercial significance of the Yeezy brand to Adidas. This amount represents the projected earnings that would have been generated had the merchandise continued to be sold under the established partnership.
Background of the Partnership Termination

Adidas officially ended its collaboration with West, now formally known as Ye, in October. This decision was a direct response to a series of anti-Semitic statements made by the controversial rapper, leading to the cessation of production for the highly successful Yeezy line. The company has been deliberating on how to manage the substantial inventory of Yeezy products that remained after the partnership ended.
Strategy for Unsold Inventory

The chief executive of Adidas indicated that the company plans to sell at least a portion of the Yeezy inventory. Speaking at an annual general meeting, the CEO stated that "burning the goods is not the solution." Instead, Adidas intends to sell some of these items and donate the proceeds to charitable organisations. The exact timeline and methodology for these sales are still being determined, with the company actively working on a plan to execute this strategy.

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How much revenue did Adidas lose from Yeezy deal?

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