The financial landscape of the fashion industry continues to feel the ripple effects of the high-profile split between Kanye West (now known as Ye) and Adidas. As we approach the third year since their separation, both parties have taken different paths following their October 2022 separation, with surprising economic outcomes for both the artist and the sportswear giant.
Adidas Finally Liquidates Billion-Dollar Yeezy Inventory
After their controversial breakup in 2022, Adidas was left with an estimated $1.2 billion worth of Yeezy products. The German sportswear manufacturer has spent over two years strategically liquidating this massive inventory, with the company recently announcing the completion of their “Yeezy divestment strategy.”
“We’ve finally closed this chapter,” said Adidas CEO Bjorn Gulden in a recent earnings call. “While challenging, our approach of selling the remaining inventory at cost price has allowed us to both move forward as a company and make meaningful contributions to organizations fighting discrimination and hate speech.”
According to financial reports, Adidas has directed a significant portion of the proceeds to anti-discrimination organizations, with another portion allocated to the Adidas Foundation, launched in 2024 to combat racism and antisemitism.
Kanye’s Post-Adidas Financial Recovery
Despite predictions of financial ruin following the termination of his Adidas partnership, Kanye West has demonstrated remarkable resilience. After losing his billionaire status in late 2022, West has rebuilt his fortune through new ventures and strategic partnerships.
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Industry analysts note that West’s business acumen shouldn’t have been underestimated. “While the Adidas partnership represented a significant portion of his wealth, West has always been a diversified entrepreneur,” explains financial analyst Maria Rodriguez. “His ability to pivot and launch new ventures speaks to his business adaptability.”
The Financial Impact on Both Sides
The dissolution of the Adidas-Yeezy partnership has had measurable financial consequences:
- Adidas reported three consecutive quarters of losses following the split in 2022
- The company’s shares dropped 45% in the year following the partnership’s end
- Yeezy products accounted for nearly 7% of Adidas’s total sales prior to the split
- Adidas has since raised its sales forecasts for 2025, showing signs of recovery
West, meanwhile, faced an immediate financial impact but has since diversified his income streams through new music releases, real estate investments, and smaller-scale fashion projects.
Lessons Learned
The West-Adidas fallout has become a case study in brand partnership risks. Major fashion and sportswear companies have subsequently implemented more robust contingency plans for celebrity collaborations, including clearer morality clauses and inventory management strategies.
For Adidas, the painful experience has led to a corporate reassessment. “This situation taught us valuable lessons about partnership structures and risk management,” Gulden acknowledged. “Our future collaborations will benefit from these learnings.”
As both parties move forward independently in 2025, the financial story of their separation continues to evolve, with unexpected resilience demonstrated on both sides. The sportswear giant has returned to focusing on its classic lines like Samba, Gazelle, and Campus, while West continues his entrepreneurial journey across multiple industries.