•Relationship Fractured With Ye’s Anti-Semitic Remarks
•Huge Losses Led To Change Of Tune
•Kanye to Earn Back Billionaire Status
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Word on the street is that leading shoe brand, Adidas is seeking to restore its shoe manufacturing deal with rapper Kanye West commonly known as Ye.
Huge Losses
The new development comes at a time Adidas is rumored to be engulfed in financial turmoil following their cancellation of their collaborative venture with Kanye West on the production of the latter’s Yezzy brand after his anti-Semitic remarks.
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Financial statements from Adidas indicated that not selling Yeezy’s existing merchandise would amount to lowering the company’s full year revenue by 1.2 billion euros ($1.28 billion) and also cutting down it’s operating profit by 500 million euros ($533 million).
The loss is estimated to soar with Adidas failing to ‘repurpose’ Yeezy’s unsold stock.
It’s always a tall order for a company to make profits through reselling inventories. To achieve this, there are a number of factors that must be considered e.g.
•Removing the Yeezy label and reselling the merchandise at discounted prices in its own retail stores. Though it can rake in some profit, the process is tedious and costly. Put in mind working on one shoe at a time, Yeezy’s distinct features cannot be altered easily.
•Selling the Yeezy brand in smaller markets outside America.
•Another aspect is the complete destruction of the Yeezy brand which is not a smart move as seen by experts.
They’re warning of a looming backlash should Adidas take that route, giant clothing companies Burberry, Coach and H&M got a baptism of fire after disposing off wearable apparel.
It’s this complicated matrix that has seen Adidas opting to have Kanye West back and restore his Yeezy brand partnership.
Reclaiming Billionaire Status
After being ripped off his deal with Adidas, Kanye West is said to have lost $1.5 billion from his net worth.
According to Forbes, Kanye’s net worth without Adidas saw him exit the billionaire club with an estimation of $400 million as his new net worth.
And now that Adidas are reconsidering having the Yeezy brand back on the shelves it’s seems Kanye West will be smiling all the way to the bank reclaiming his Billionaire status.
What’s your take on Adidas change of tune? Drop a comment.
BY STEVE OSAKA
