The End of an Era: Adidas Sells Its Last Pair of Yeezys
In a move that marks the end of a lucrative yet controversial chapter, Adidas announced on Wednesday that it had sold its final pair of Yeezys, the wildly popular sneaker line developed in collaboration with rapper and designer Ye, formerly known as Kanye West. This decision comes as the sportswear giant seeks to distance itself from the fallout following Ye’s widely condemned antisemitic remarks in 2022. The partnership, which began nearly a decade ago, had been a cornerstone of Adidas’s success, but it ultimately became a source of significant reputational damage.
Adidas severed ties with Ye in 2022 after he made offensive and antisemitic comments on social media and in public appearances. The breakup was a costly one: Adidas reported that the termination of the partnership cost the company nearly 250 million euros that year. The financial blow was compounded by the ethical and public relations crisis that followed. Despite Ye’s initial apology to the Jewish community in 2022, he later retracted it in a series of inflammatory social media posts in February, in which he even declared himself a Nazi. These actions left Adidas with no choice but to cut ties and move on.
The sale of the remaining Yeezy inventory generated about 50 million euros in revenue during the fourth quarter of 2024, contributing to Adidas’s overall revenue of 5.97 billion euros—a 24% increase compared to the previous year. However, the company acknowledged that this was likely the last financial boost it would receive from the Yeezy line.
Financial Fallout and a Cautious Outlook
The end of the Yeezy partnership has left Adidas navigating a complex financial landscape. While the company managed to generate significant revenue from the sale of its remaining Yeezy stock, it is now facing the challenge of moving forward without one of its most profitable product lines. Adidas’s revenue growth forecast for 2025 has been adjusted downward to 10%, a drop from the 12% forecast in the previous year. This is the first time in the company’s history that its financial outlook does not include contributions from the Yeezy line.
The impact of the breakup has been particularly felt in North America, where the Yeezy brand, fueled by Ye’s immense popularity, had been a major driver of sales. Adidas reported that sales in North America declined by 2% in 2024, a drop it attributed to the significant decrease in Yeezy sales. This decline underscores just how reliant the company had become on the partnership with Ye.
Adidas is also grappling with the fallout from its decision to ignore Ye’s misconduct and controversial behavior for years, which has led to criticism and a loss of public trust. The severed contract left the company with a massive inventory of unsold Yeezy products, potentially resulting in losses of 1.2 billion euros in sales and around 500 million euros in profit in 2024.
A New Strategy: Cutting Costs and Restructuring
In an effort to address these challenges, Adidas announced a major restructuring plan under the leadership of its CEO, Bjorn Gulden, who took the reins in 2023. The plan includes cutting up to 500 jobs at the company’s headquarters in Herzogenaurach, Germany, as part of a broader effort to reduce complexity and improve decision-making processes. Gulden explained that it no longer made sense for employees in Germany to dictate what products and strategies would work in international markets, emphasizing the need for a more decentralized approach.
By reducing its workforce and restructuring its operations, Adidas aims to streamline its business and focus on what matters most: meeting the needs of its global customer base. The company is also working to rebuild its reputation and regain consumer trust, which was badly damaged by its association with Ye and the subsequent fallout.
Learning from the Past: A Commitment to Responsibility
Adidas has also taken steps to address the ethical implications of its former partnership with Ye. In 2023, the company decided not to write off the remaining Yeezy stock but instead to sell it and donate a portion of the profits to organizations such as the Anti-Defamation League and Robert Kraft’s Foundation to Combat Antisemitism. This decision was a clear attempt to make amends for its association with Ye and to demonstrate a commitment to social responsibility.
By taking this approach, Adidas is signaling that it is serious about ethical accountability and wants to move forward in a positive direction. The company’s decision to support organizations fighting antisemitism is a meaningful step toward repairing its image and rebuilding trust with consumers.
The Future Beyond Yeezy: Optimism and Rediscovery
Despite the challenges it has faced, Adidas is striking an optimistic tone about its future. CEO Bjorn Gulden has expressed excitement about new celebrity collaborations and a renewed focus on other popular sneaker lines, such as the Samba, a decades-old brand that has recently experienced a resurgence in popularity. The company is betting on these initiatives to help fill the gap left by the Yeezy line and drive continued growth.
Gulden emphasized that there is still much to be enthusiastic about in 2025, from new product launches to innovative marketing campaigns. His message reflects a broader sense of resilience within the company as it works to move past the Yeezy scandal and chart a fresh course.
Conclusion: Adidas’s Path Forward
The end of the Yeezy era marks both a challenge and an opportunity for Adidas. While the company is undeniably stronger without the baggage of its partnership with Ye, it must now work to reinvent itself and reconnect with consumers. By cutting costs, restructuring its operations, and focusing on ethical responsibility, Adidas is laying the groundwork for a brighter future.
As it moves forward, the company’s success will depend on its ability to innovate, adapt to changing market conditions, and rebuild its reputation. With a focus on new partnerships, iconic sneaker lines, and a commitment to doing what is right, Adidas is poised to once again thrive in the competitive world of sportswear. The future may be uncertain, but one thing is clear: Adidas is ready to turn the page and start a new chapter.
