Will Adidas Stop Making Yeezys Now?
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Kanye West Antisemitic Comments: All The Fallout And Backlash Explained
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Adidas announced on Tuesday that it was cutting ties with Kanye West over his recent antisemitic remarks, leaving many to wonder: will the brand stop making Yeezys altogether?
After garnering criticism over the last few weeks for repeated antisemitic comments, including writing on Twitter on October 3 that he was “going death con 3 on Jewish people,” West, who legally changed his name to Ye, was dropped by the sportswear giant after the long-running partnership.
Adidas faced scrutiny for its silence for several weeks while the partnership was “under review,” resulting in criticisms regarding Adidas’ historical background—the brand’s co-founders, brothers Adolf and Rudolf Dassler, were early members of the Nazi Party. The brand was praised on Tuesday for its decision to cut ties.
Known for their sleek and sporty designs, Yeezy shoes have been a very popular staple in many closets, and the company has already deemed the move a “short-term negative impact” that will cost them around $247 million in lost sales from Ye’s Yeezy line alone.
In a public statement, Adidas said that it “does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
As far as production goes, Adidas told Newsweek that the company will “stop the adidas [sic] Yeezy business with immediate effect. This includes ending production of Yeezy branded products.”
Does Adidas Own the Yeezy Brand?
Following the news of the dismantled partnership, the future of the Yeezy brand remains a little unclear.
While Ye still officially owns the company’s trademark, Adidas said in its statement that it was “the sole owner of all design rights to existing products as well as previous and new colorways under the partnership.”
Adidas added that more information will be provided as part of the company’s upcoming Q3 earnings announcement on November 9.
What happens next for Adidas and Yeezy is now the question. Meanwhile, Ye has previously hinted toward the prospect of opening his own retail stores.
Adidas’ Share Price
Adidas’ stock has dropped in the last few days, though it is not clear if that is strictly related to the recent controversies involving Ye.
Newsweek previously reported that as of Monday, Adidas’ stock was showing at -13.65 percent over the previous five days, and Yahoo Finance reported that so far in 2022, Adidas stock has gone down 64 percent.
Forbes also reported that Adidas shares fell 5.6 percent to $97.96 a share after the company dropped the rapper and fashion designer.
Below is a graphic provided by Statista, which plots the Adidas share price since January 2019.
However, it appears that despite the recent news involving Ye, Adidas’ shares were already on the decline. The brand previously reported that the third quarter sales rose a mere 4 percent for the quarter, and sales in China have slowed immensely.
Newsweek reached out to a representative for Kanye West for comment.
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