Berlin, Oct. 26 (US): Adidas ended its partnership with rapper and fashion designer Ye on Tuesday after he delivered a series of hate speeches, a move that ousted the musician from Forbes’ list of the world’s richest people.
“Yi’s recent comments and actions are unacceptable, hateful and dangerous, and violate the company’s values of diversity, inclusion, mutual respect and fairness,” the German company said.
Forbes said the end of the deal meant Yi’s net worth was reduced to $400 million. Reuters reported that the magazine estimated his stake in the Adidas partnership at $ 1.5 billion.
For Adidas, ending the partnership and producing Yeezy-branded products, as well as stopping all payments to Ye and his companies, would have a “short-term negative impact” of up to 250 million euros ($248.90 million) on net income this year, the company said.
Gap, which ended its partnership with Ye in September, said it is taking immediate steps to remove Yeezy Gap products from its stores and that it has closed
European fashion house Balenciaga has also cut ties with Yi, according to media reports.
Yeezy sneakers, which cost between $200 and $700, generate about 1.5 billion euros ($1.47 billion) in annual sales for Adidas, and make up just over 7% of its total revenue, according to estimates by Telsey Consulting Group.
Shares of Adidas, which lowered its full-year forecast last week, closed 3.2% lower. The group said it will provide more information as part of its highly anticipated third-quarter earnings announcement on November 9.
EAE