While Balenciaga and JPMorgan Chase cut ties with Kanye West after repeated anti-Semitic statements, the West’s largest stock company, Adidas, is notably silent.
But the German sportswear giant may not be able to ignore the controversy for much longer after Kanye West mocked the company by saying it could be as anti-Semitic as it wanted and still have the retailer’s support.
I can say anti-Semitic things, and Adidas can’t leave me. What now? What now?” Kanye was seen asking in a short video clip from the October 16 episode of Drinking heroes A hip-hop community podcast hosted by NORE and DJ EFN, which has since been deleted.
The video sparked fresh calls for the German sportswear giant to ditch Kanye West, and the hashtag #BoycottAdidas has been trending on Twitter since the clip was posted on October 21.
Kanye West was recently shut down from Instagram and Twitter, after saying he was going to “Death Con 3 on JEWISH PEOPLE”, and has since continued his anti-Semitic attack on “Jewish media” and “Jewish Zionists”, allegedly taking advantage off blacks in the music industry .
Adidas already put the Yeezy deal on review after West’s controversial October 3 show at Paris Fashion Week, where models walked the runway wearing “White Lives Matter” shirts. Adidas said October 7 that it would review its troubled partnership, noting “We will continue to accompany the existing product during this period,” adidas said in a statement.
But while Adidas is considering ditching Kanye West and the highly profitable Yeezy brand from its product offerings, the company released the Adidas Yeezy Boost 350 v2 in an all-new color, Salt, on Sunday, which was already bought and resold 899 times on Sunday. StockX online distributor market.
Adidas’ turbulent future
The mounting publicity crisis comes at a bad time for Adidas.
In its latest third-quarter earnings report, published last Thursday, Adidas lowered its operating margin forecast for this year from 7% to 4% due to excess inventory that will have to be sold at a discount. Adidas has warned of a backlog of unsold goods in warehouses due to deteriorating trends in store traffic in Greater China and slowing demand in Western markets since September.
The news sent Adidas shares down 9.1% — canceling out all the gains made during CEO Kasper Rørsted’s six-year tenure, and leaving it with a market value of about one-sixth of its US peer rival Nike. In the face of declining profits, Adidas may be tempted to keep Kanye West on its payroll, as the Yeezy line accounts for a large percentage of Adidas sales.
Although Adidas does not report specific sales figures from the Yeezy Ranking, which began in 2013 and ends in 2026, Morningstar analyst David Swartz estimates that Yeezy sales for Adidas are about $2 billion annually — potentially making up 10% of Adidas total sales.
Ten years ago, Adidas was struggling in the United States, the largest sportswear market. “Thanks in part to Yeezy, her US business has rebounded,” Schwartz said. “It helped bring its North American business back into relevance, made Adidas relevant to the collector’s market, and possibly allowed it access to a demo it missed.”
Kanye West has remained ambiguous about the future of his partnership with Adidas, telling reporters outside his daughter Northwest’s basketball game on October 22, “We’re going through the law now, so anything can happen.”
adidas did not respond to luck’Comment request by time of publication.
An anti-Semitic mouthpiece
The Anti-Defamation League, a Jewish NGO, has started a campaign called #RunAwayFromHate to allow people to contact Adidas directly and ask the company to condemn West’s comments.
In an open letter to adidas, ADL wrote, “In light of the increasing anti-Semitic statements made by Kanye West over the past few weeks, we are disturbed to learn that Adidas plans to continue launching new products from its Yeezy brand without any ostensible acknowledgment of the controversy surrounding his recent statements. “.
Note that while adidas has condemned anti-Semitism in the West, hate groups like White Lives Matter and Goyim Defense League celebrate and promote Ye’s comments.
“We urge Adidas to reconsider support for the Ye product line and to issue a statement making clear that Adidas and its community have zero tolerance for anti-Semitism,” the ADL message read.
Kanye West also recently made a bid to buy alternative tech social media platform Parler. “In a world where conservative views are controversial, we have to make sure we have the right to express ourselves freely,” Yi said in a press release on October 17.
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