While Adidas plans a recovery from its very public split, this could be the best opportunity for Nike to lead. Now, Adidas has undoubtedly been enjoying profits, leading the market for a long time. Both the company and Kanye West earned millions out of the partnership that lasted for around a decade.

Today, Adidas not only faces an estimated loss of $750 million, but it also faces a question of how to kick back into the market. It could prove beneficial for Nike’s shares, seeing a rise after the competitor takes a hit. Here is how market experts have analyzed the situation.

How Adidas’ loss could help Nike gain more profits

Even Adidas likely did not expect the loss they were about to face by ending their deal with Kanye West. But months after ending the deal, they are still bracing for continued losses this year. As per Yahoo, the German-born company could face a loss of nearly $750 if their Yeezy products are left unsold. While the popular shoes are still in demand, Ye’s exit has certainly affected the sales numbers. Analyst Adrienne Yih feels that Nike could use this chance to takeover over the market. With Kanye West gone, it is Nike’s Jordan that continues to stay strong.

Just like Ye’s Yeezy, Michael Jordan’s Jordan line with Nike saw massive success. Proving the power of celebrity endorsement, Nike made $5 billion worth of revenue out of this line in 2022 alone. It is worth noting that Ye was the first non-sport celebrity to see success with a sports brand. However, the company was not left with many options after the artist made anti-Semitic comments, drawing a lot of flak.

As per Benzinga, Nike made profits of $12.4 billion in the third quarter. Now, Adidas’ main competition will probably continue to enjoy the benefits until the former finds a way out.

How Adidas has been tackling the Kanye West split

Adidas recently made news for rumors of them planning to burn Yeezy footwear. On the other hand, they were also set to come to an agreement with Ye for selling the rest of their stock. In order to start over, the brand collaborated with singer Beyonce for the Ivy Park line, but it has not seen the same success as Yeezy.

Do you think Nike will successfully benefit from the tie-up in the future as well? Share your thoughts in the comments.