Kanye West turned out to be a challenge Adidas required assistance with. The rapper’s breakup with the sportswear behemoth caused their sales to plummet.
MarketWatch reports that S&P Global Ratings lowered the shoe company’s long- and short-term debt ratings.
Early in 2021, the Yeezy agreement contributed to around 5% of the company’s overall sales, which included Im shoes, clothes, and sporting items. The business also expected Yeezy to propel its revenues up 7% in 2022.
The stock, however, fell precipitously following the breakup between the fashion magnate and Adidas.
The multi-billion dollar corporation had previously issued a profit warning, stating that the separation will hurt 2023 sales. According to reports, the loss will be $1.3 billion, representing a fall of 7% to 9%.
The Chicago rapper, whose net worth dropped from $2 billion to $400 million, was also harmed by the breakup.
