By Scott Kanowsky
Investing.com -- Adidas AG (ETR: ADSGN ) has confirmed that it has ended its partnership with Kanye West due to a recent string of controversial comments and actions made by the rapper and artist.
In a statement, the German sportswear brand said it would terminate its dealings with Ye, as West is now known, immediately. It will halt production of any of its Yeezy-branded products, as well as cease payments to Ye and his companies.
"adidas will stop the adidas Yeezy business with immediate effect," the Herzogenaurach-based firm said, adding that it will have a negative impact of up to 250M euros on the company's net income in 2022. Yeezy had generated around 1.5B euros annually in sales for Adidas, or about 7% of its total revenue, according to recent figures from Telsey Advisory Group cited by Reuters.
Shares in Adidas, which also cut its annual forecast last week, fell sharply in late afternoon European trading. They have dropped by more than 20% over the past month as controversy swirled around its relationship with Ye.
The decision comes after Ye published several outbursts on social media that were widely condemned for being anti-Semitic. His accounts on Instagram and Twitter were suspended.
Ye also wore clothing at a Paris fashion show that included a slogan that has been identified by the Anti-Defamation League as hate speech.
Meanwhile, Ye has accused Adidas of stealing his design ideas. In its statement, the group said it is the "sole owner" of all design rights to existing products.
Earlier in October, Adidas had said that it would put its ties to Ye - which it once hailed as the "most significant partnership created between a non-athlete and sports brand" - under review.
Other companies that had been collaborating with Ye have also reportedly stopped doing business with him, including retailer Gap (NYSE: GPS ) and fashion house Balenciaga.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.