Kanye West’s Decision to Ditch Gap Might Just Cause Adidas $1.5 Billion on Their Annual Revenue

Kanye West’s Decision to Ditch Gap Might Just Cause Adidas $1.5 Billion on Their Annual Revenue

Kanye West and his feuds not only affect his but also the companies he works with. He has proved to be super valuable for the brands that collaborated with him as well. Looking at his career, it would be difficult to tell whether his success is more from being a musician or a designer. His YZY sunglasses are not out yet, but are already all over social media, with celebrities, including ex-wife Kim, trying them on.

The futuristic sunglasses deal happened in collaboration with fashion brand GAP. But things went sour when Ye was not allowed to put his vision into the line. For a decade, he has minted money in his partnership with Adidas for the Yeezy sneakers. But how long will it last if Ye decides to take matters into his own hands?

How Kanye West and GAP’s deal could affect Adidas

Kanye seems to be done with big brands, and it is starting to worry them now. Both he and GAP had billion-dollar ambitions that are clearly fading now. This could be a matter of concern for Adidas, which makes up to 8% of profits just from Yeezy’s, nearly $1.5 billion annually. Kanye wants to fully start up his own company, which means he could take over all of his products with him. His current partnership with Adidas will expire in 2026, with no assurance of renewal, especially if Ye takes the product off their shelves.

His separation from GAP gave a big blow to the retailer, which is already struggling to survive in the market. Although the company can sell its products for the first half of 2023, it will take a hit as a result of losing its “cool factor.” This sets a good example for Adidas, as Ye’s iconic presence helped them garner a younger audience.

ALSO READ: From Being in Business With Adidas and Nike, to Now at Helm of His Company, How $6.6 Billion Worth Kanye West Is Calling Shots at Yeezy

On the side, Adidas is trying to hype up Beyonce’s Ivy Park collection, but the traction is not comparable to that of Ye’s collection. In the future, if Adidas does lose Ye’s magic, it will be vital to find someone that fits perfectly with the company and the line of products.

What do you think? Will Ye’s exit affect Adidas? Share your thoughts with us in the comments below.

Leave a Reply

Your email address will not be published. Required fields are marked *