Adidas Will Sell Yeezy Designs Under Another Name After Kanye West Controversy, CFO Says
Adidas says it still plans to sell Yeezy designs – just under a different name.
The footwear and apparel brand announced its intention to continue selling Yeezy products – developed by Ye, formerly known as Kanye West – in a quarterly earnings call on Wednesday.
“I can confirm that Adidas is the sole owner of all design rights related to existing products, past and new colorways under the partnership,” said Harm Ohlmeyer, Adidas’ chief financial officer, during the call. “We want to make use of these rights as early as 2023.”
“In the future we will use the existing inventory, with the exact plans being developed as we speak,” added Ohlymeyer.
The announcement comes after Adidas announced this last month cutting ties with the rapper after he made anti-Semitic statements. In an Oct. 25 press release, the company said it would “cease production of Yeezy-branded products and halt all payments to Ye and its companies.”
The Germany-based company said it will incur a loss if it ends its relationship with Ye and Yeezy-branded products.
“Given the high seasonality of the fourth quarter, this is expected to have a short-term negative impact of up to EUR 250 million on the company’s net income in 2022.”
However, in Wednesday’s quarterly earnings call, Ohlmeyer said it would make up those losses by continuing to sell the products without the additional costs that come with a partnership.
“We will save over 300 million euros in royalties and marketing fees,” he said. “This will help us offset the vast majority of the revenue and earnings impact in 2023.”
Ye designed the Yeezy line in a partnership with Adidas that started in 2015 with the Boost 750 shoe. Since his anti-Semitic remarks, the singer has been dropped from several other brands he worked with, including GAP and Balenciaga.
On Tuesday, Adidas announced that it will be led by a new CEO starting next year. The current CEO, Kasper Rorsted, will be succeeded by Puma’s Bjørn Gulden, who is credited with transforming the company and increasing its sales.