Kanye West's worst nightmare is coming true — Adidas plans to sell Yeezys under new branding
A reporter asked Ohlmeyer if there was any reputational risk to the company if it continued to release Yeezy products despite no longer having the backing of the artist.
"We are working through all the options," Ohlmeyer said."When the time is right we will be more specific." Sneaker Twitter's reaction to Adidas rebranding Yeezy is that the shoes will likely sell, but won't generate the previous hype achieved with Ye's involvement. When Adidas announced its split with Ye, the company said it expected its bottom line to take a $247 million hit this year. Wednesday's earnings report was in-line with that forecast. Ohlmeyer added the company's annual revenue would be roughly $502 million lower than expected this year.
But Adidas will save roughly $302 million in 2023 because of royalties and marketing costs it will no longer pay to support the Yeezy business. When Kanye left Nike for Adidas in November 2013, he criticized Nike – and then-CEO Mark Parker – for not paying him royalties on sold shoes.
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