Adidas divorce bill with Kanye West is ramping up, with no pause. The sportswear giant is stuck in a fix where its revenues are not shoring up as expected.
According to MarketWatch, the S&P Global Ratings downgraded its long- and short-term debt ratings on the sneaker brand.
Earlier in 2021, the company’s total sales from the Yeezy deal, including Im sneakers, clothing, and sporting goods, was about 5%. The company also pinned hopes on Yeezy to shoot their sales up 7% in 2022.
However, after the fashion mogul and Adidas’ divorce, the stock plummeted sharply.
Previously, the multi-billionaire company released a warning on profits saying that 2023’s sales would take a hit due to the split. The hit is reportedly estimated at $1.3 billion, a decline of about 7% to 9%.
On the other side, the breakup also impacted the Chicago rapper, whose net worth slumped from $2 billion to $400 millionaire.
Meanwhile, users on social media poked fun at the German brand for making rushed and rash decisions about Ye.
“Adidas HQ crawling back to Kanye after losing billions,” one person commented.
“Ye (fka Kanye West) & Adidas have reportedly reached an agreement to sell all remaining Yeezy inventory,” another tweeted.
“If we learn anything from this Kanye West & Adidas thing, is cancel culture was never real,” someone wrote.
[via]
