“We make a mean team, my Adidas and me”—Darryl McDaniels, Joseph Simmons, Rick Rubin
One of the things that got a big buying boost during the lock-down portion of the pandemic was all manner of leisure wear, including the sort of things that were on offer by companies including Adidas. This was a function of people looking for casual comfort, but rather than picking up something from the Scoop or Free Assembly brands from their local Walmart, which would allow them to “Save Money. Live Better,” there was a propensity, in many instances, to opt for something from the Adidas offerings from Yeezy or IVY PARK.
The former, of course, was the line that Adidas created in collaboration with the performer known as Ye. Adidas ended that relationship last October after he made several anti-Semitic remarks. At the time, the athletic apparel brand released an announcement that said, in part, “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.” Two years earlier, his then-wife had come out to defend her then-husband’s bizarre rants, noting that he, according to her, suffers from bipolar disorder. But Adidas was making some serious returns on its investment with the man whose music has gone Platinum and with whom it had been working since November 2013, so until last fall the status remained quo.
How significant is the split for the Adidas?
Last week the German company announced that it is likely to lose some $1.3-billion in revenues and $533-million in operating product.
Apparently Adidas was bringing in some 10% of its total annual revenues—some $2-billion—in selling Yeezy stuff.
My Adidas, indeed.
