Adidas has let its love of celebrity collaborations cloud its judgment when it comes to making money.
Adidas In The Hole For Billions
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Athleisure brands once prided themselves on the partnerships they made with celebrities like Beyoncé, Pharrell and Kye West but now, it seems the days of everyone making a profit are gone.
While celebrities like Beyoncé profited greatly from associating themselves with Adidas, the company itself suffered. In their report, the company has shared that they are on track to lose $1.3 billion in sales by 2023.
Why the big loss? They blame their collaboration with Ye and the fact that it fell through big time. The company claims they are having difficulty selling Yeezy’s stock of shoes and apparel.
The brand cut ties with Ye at the end of last year when the rapper began using his social media to spew antisemitic hatred and acting erratically on various social media platforms.
Adidas Plans To Profit From Yeezy
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Although they cut ties with Ye, the company has plans to profit from the rapper’s leftover designs with the Yeezy logo removed. The problem is that the clothes don’t have any value to them without the “New Boy” rapper’s name attached to them.
Plus, let’s face it, without the Yeezy logo, the clothes look like they’ve been worn and torn in style. Some of them are just straight hoodies tt need some kind of jewelry to wear.
So, yeah, we can see why no one is buying Yeezy’s unlabeled throwaways. The company claims that if they do nothing, it will count the loss to their entire billions.
Adidas Could Lose An Additional $534 Million
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The brand needs to make the old Ye stuff work because a $534 million loss is on the table and on top of the billions they’re projecting as losses, come on, you do the math. The CEO of Adidas commented on the state of the brand at the moment, and he knows it looks terrible.
Bjørn Gulden says, “The numbers speak for themselves. We are currently not performing as well as we should.” He stated that the company plans to use 2023 to transition from whatever is happening here to something that is not this.
Ye isn’t the only humble person messing up the brand. It was also recently reported that Beyoncé’s Ivy Park brand is also struggling. Dinger himself does the best, he negotiates a lot to be paid millions every year as long as the brand cooperates.
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Unfortunately, the equipment he brought didn’t sell very well. Fans have complained in the past about the brand not being available anywhere, allegedly always sold out. The Wallstreet Journal published an exposé on the brand and called out Bey for raking in $20 million.
What does Adidas do? Well, they lost $40 million actually. Furthermore, they expect to make $250 million in 2022. It seems that in total, the brand lost a staggering $200 million playing around with Bey and the Beehive.
Where do they make a profit?
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Source: thtrangdai.edu.vn/en/
