Adidas on Tuesday ended its partnership with Ye, also known as Kanye West, after the rapper’s “hateful and dangerous” comments.
“Adidas does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness,” Adidas said in a statement.
The German sportswear maker said it will end production of Yeezy branded products and stop all payments to Ye and his companies.
The company expects a short-term negative impact of up to 250 million euros ($246 million) on net income in 2022, as the Christmas quarter sees greater demand.
Yeezy represents a little over 7% of Adidas’ total revenue, according to Telsey Advisory Group.
The company said it was the sole owner of all designs as well as previous and new colorways under the partnership.
The multiple Grammy award-winning artist was under pressure after outbursts on social media against other celebrities. Then, on a podcast on Oct. 16 he said: “I can say anti-Semitic things, and Adidas can’t drop me. Now what?”
Twitter and Instagram blocked Ye over antisemitic remarks. Gap, Talent agency CAA and Balenciaga also dropped him as a client in recent weeks.
The Anti-Defamation League, Antisemistism.com and the International Legal Forum applauded the move by Adidas.
Adidas fell 4% in morning trading in Frankfurt, Germany, after Bloomberg reported early it was planning to end the partnership.