Adidas Shares Plunge as Yeezy Partnership Breakup Looms with Losses

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Adidas shares took a hit after the company warned of potential losses from its dissolved partnership with rapper Kanye West. The Yeezy brand was highly successful but ended after West’s controversial remarks. Adidas is now grappling with a stockpile of unsold Yeezy merchandise and expects a potential loss of $1.3 billion in revenue and $535 million in operating profit if it can’t be sold. Despite this, CEO Bjørn Gulden is optimistic that Adidas will return to profitability in 2024. He believes the company has “all the ingredients to be successful” and just needs time to rebuild.

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