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adidas claims it will no longer sell Yeezy designs
The split and return of adias Yeezys
In October of the previous year, a dispute involving Ye prompted adidas to terminate one of their most successful collaborative projects. While Ye and the Three Stripes brand eventually reconciled, this served as only a temporary solution to the brand's increasing financial setbacks.
Comments from adidas moving forward
Comments from the current CEO of adidas, Bjørn Gulden, shed light on the future of adidas Yeezy. During a recent earnings call, Gulden confirmed that the brand will not be retailing Yeezy designs going forward. Gulden stated, "The Yeezy product is his creation; he's the originator, and we've been his partners. Although we could technically sell his designs later on, it's not aligned with our strategy." He continued, "Our current objective is to minimize the impact, liquidate the inventory, utilize the funds beneficially... and later establish a business without Yeezy."
The future is yet to remain seen
While the return of adidas Yeezy led to substantial profits for the Three Stripes—earning approximately $560 million in May alone—their forthcoming focus will center on the core business. Despite sales in North America being "marginally better than anticipated," they experienced a 16% decline, a figure that would likely have been more significant if the brand had ceased Yeezy sales. With upcoming releases planned through August and beyond, adidas' financial performance is expected to improve both at the top and bottom lines. However, once they formally sever ties with Ye, the future of the sportswear icon's identity remains uncertain.
