Adidas‘ decision to write off its relationship with Ye’s brand, Yeezy, is not going well.
On Wednesday, the German sportswear brand announced that the company could suffer its first annual operating loss in three decades.
The operating loss would be $736 million after having a potential $500 million from the Yeezy brand. It’s the most significant loss in 31 years.
Adidas published its 2022 results and outlook for 2023 soon after the earnings fell 2.2% Wednesday morning.
Though the brand cut off its relationship with Kanye West, formerly known as Ye, in October, the demand for Yeezy’s has skyrocketed.
John Mocadlo, chief executive of Impossible Kick, saw the surge in demand for the sneakers and clothing on the resale site.
However, Adidas did hint at the brand repurposing Yeezy products. Besides Yeezy, Adidas had a “disappointing year,” Chief Financial Officer Harm Ohlmeyer said.
“We definitely did not perform as we should have performed,” he said on Wednesday.”
“While the company’s global sales grew 1% last year, it saw a 36% annual sales decline in China — its biggest single market — due partly to the nation’s now-ditched zero-Covid policy,” ESPN reported.
