Adidas, Gap, and Others Flee Kanye West

By: James Flippin · October 27, 2022 · Reading Time: 3 minutes


Kanye West, the famous rapper-turned-fashion-icon, is sitting front row for what could be his legacy’s downward spiral. Mr. West, who now legally goes by Ye, is one of a few music celebrities who arguably found more success in business than music.

Most notably, he struck up a billion-dollar partnership with Adidas (ADDYY) to sell his high-end, ultra-popular Yeezy apparel. This deal alone reportedly contributed $1.5 billion to Ye’s net worth. But after an onslaught of recent antisemitic comments, Mr. West is watching his net worth crumble as Adidas and other brands sever ties with the musical artist.

Fashion Fallout

In a formal statement, Adidas announced that it’s cutting ties with Ye, as Adidas “does not tolerate antisemitism and any other sort of hate speech.”

This is no small decision for Adidas, as Yeezy products currently make up 8% of the apparel company’s sales. For reference, the German-based company reported a 2021 revenue of over $21 billion, with Ye reportedly earning 15% of all Yeezy sales.

In addition to Adidas, Gap (GPS) is also cutting ties with West. Gap and Yeezy had a similar partnership in place, valued at just under $1 billion. Some celebrities are even distancing themselves from Ye, with famous athletes Aaron Donald and Jaylen Brown ending partnerships with Kanye’s sports marketing agency.

Ye’s Future

Coincidentally, this fallout is occurring just as Kanye is set to become a free agent in the music business.

His most recent album “Donda” fulfilled his last contractual agreement with Def Jam Records, which ended a decades-long agreement. And, in the wake of his comments, Ye was dropped by his talent agency, CAA.

Ironically, these announcement came weeks after Ye stated, “I can say antisemitic s—– and Adidas cannot drop me.” This debacle represents the inherent risk behind all brand relationships and the potential to rise — and fall — with the reputation of one individual.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender