Adidas may have dropped Ye, but it doesn't look like they are ready to drop his designs.
Adidas ended its sneaker partnership with Ye last month after the musician made anti-Semitic remarks, however the company will continue to sell the Yeezy sneaker and apparel line, just without the name and branding. CFO Harm Ohlmeyer announced that the company plans to sell existing Yeezy product designs using its own branding starting as early as 2023 after ending its partnership with Ye last week. Ohlmeyer confirmed that "Adidas is the sole owner of all design rights registered to existing product, as well as previous and new color ways under the partnership, and we intend to make use of these rights". As you could imagine this quote caused an uproar on the internet with many streetwear enthusiasts condemning this action by the sneaker retail giant. Ohlmeyer went on to say "Going forward, we will leverage the existing inventory with the exact plans being developed as we speak."
Yeezy brand products generated $1.7 billion in sales in 2021 which was roughly 8% of the company's total sales, according to Morgan Stanley. The brand also was a major reason Adidas got customers to come into their retail partner stores. Ending this partnership will cost Adidas more than $250 million in profit and almost $500 million in lost revenue, Adidas said earlier this week. Yeezy's agreement with Adidas was set to run through 2026.
Adidas is expected to hire outgoing Puma EO Bjorn Gulden, who will leave his spot at the end of the year. Gulden will be replacing Adidas CEO Kasper Rorsted.
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