Although Adidas and Kanye West dissolved their partnership in 2022, it still negatively affects the brand’s bottom line. But, is it fair to blame the drop in sales entirely on Ye? Well, there are many pieces to this puzzle. This article examines the bigger picture. Then, you can decide…  

Adidas and Kanye “Break-Up” Hits North America Hardest

No matter how controversial, we have seen the power of celebrity footwear. As recently displayed when Donald Trump released his shoe line. Nonetheless, the idea that it can make or break a brand seems extreme…

YET, ADIDAS CITES THE END OF ITS COLLABORATION WITH KANYE FOR “LAGGING SALES” IN NORTH AMERICA. 

Via the Wall Street Journal

In a post-earnings conference, the Chief Executive of Adidas, Bjorn Gulden, said of their growth:

“ADIDAS IS SIX TO EIGHT MONTHS BEHIND ON ITS RECOVERY IN NORTH AMERICA.”

However, the athletic wear company did not discontinue sales of the Yeezy line. It intends to eliminate its inventory of Kanye collaboration shoes at a reduced cost. 

But that has not solved the problem of their excess inventory of the Adidas and Kanye shoes. Especially after Kanye and his supporters burned bridges with the company on social media… 

That being said, there are a couple of other things to take into consideration before laying blame on the musician… 

Ye May Not Be the Issue… 

Before we start worrying about the future of the established footwear company, there is an important detail to note… 

NORTH AMERICA IS THE ONLY MARKET WHERE ADIDAS IS EXPECTED TO NOT SEE GROWTH. 

Next, athletic shoe brands in general foresee stagnation in the region. Their competitor, Nike, also predicts lower sales volume among “more cautious U.S. spending.”

At the end of the day, Adidas and Kanye’s parting ways surely impacted the company’s performance. 

But it is doubtful that the brand will disappear anytime soon. 

Be Great,

GCTV Staff

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