Adidas boss ADMITS Kanye West exit slashes profits

Adidas’ CEO Bjørn Gulden has finally admitted that cutting ties with Kanye West’s Yeezy brand is “hurting” the business.

The German's company head honcho said, “The loss of Yeezy is “of course, hurting us,” especially North American sales, which experienced a 20 percent drop.

In the first quarter of 2023, the sportswear giant slashed sales after Yeezy lost by €400m.

Meanwhile, a BBC News report revealed overall revenue decreased by 1 percent.

Last October, the shoe-maker brand severed ties with Ye after he launched an anti-Semitic tirade.

The company released the statement when it cut ties with the fashion mogul at that time, “Adidas does not tolerate antisemitism and any other sort of hate speech.”

Moreover, Adidas revealed the mountains of unsold Yeezy would further hit the company worth €500million profits in 2023 if not “repurposed.”

Previously, Adidas mulled extreme option, in case of stark losses, of putting West's $500 million unsold Yeezy pile to fire.

Several analysts estimated product mass at approximately $300 million to $500 million. In return, the company is expected to shed up to $1.3 billion in profit losses in the current year, as per Financial Times.

“What makes this so dramatic is how big it is,” Wedbush analyst Tom Nikic told the Washington Post, adding that the Yeezy brand was raking in almost $2 billion in revenue in a year.

“That’s really a big, substantial part of (Adidas’s) business — and the abruptness with which it happened.”