What Does the Failure of Kanye West’s YEEZY Label Mean for adidas and Other Brands?

Things did not go down well for Ye post his anti-Semitic comments. It resulted in Ye’s break up with big names like JPMorgan, Balenciaga, and talent representative Creative Artists Agency. But what about its biggest partner, adidas? Our last news covered the effect on one of the biggest collaborations of all time: Yeezy. But that is old news now. Because we have gotten hands on the latest update of the aftermath of the brand: What Does the Failure of Kanye West’s YEEZY Label Mean for adidas and Other Brands?

For starters, adidas and Ye took different routes back in October. After that, the brand had struggles with its sales. And now, they are set to provide the German sportswear brand €500 million ($530 million) revenue loss. Besides, it is 10 percent of its total revenue. Other than withholding production and scrapping upcoming releases, major retailers like Foot Locker have pulled YEEZY products. Conversely, they have cancelled future orders.

However, Swoosh is taking full advantage of that. The Yeezy withdrawal is causing Nike to benefit this holiday season. According to Wedbush analyst Tom Nikic, adidas and YEEZY had 10 releases during December. Moreover, there were 65 total drops in 2021. Additionally, Nikic continues that he anticipates approximately 26 significant releases from Nike/Jordan Brand in December, which would likely dominate the market during the Christmas season.

Due to this, Nike can expect to receive light at the end of the tunnel. The Swoosh has a chance to shine after the announcement of 1.5 billion USD, a 22 percent decline in net income throughout the first fiscal quarter of 2023. On the other hand, the decline might be due to rising freight and logistics costs and a fiercely competitive promotional climate.

What Does the Failure of Kanye West’s YEEZY Label Mean for adidas and Other Brands? Here are we providing you with the latest reports on that! To not miss further updates on the ongoing situation, follow us on Facebook and Twitter.

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