Sports apparel giant Adidas recently ended its relationship with rap artist Kanye West, reportedly due to West's antisemitic remarks and hate speech. This decision has left the company with a hefty $530 million worth of Yeezys, West's signature sneaker.
The decision came shortly after reports of West showing pornography in the workplace, which prompted an internal investigation. Yeezys had been a key contributor to Adidas' annual revenue, generating an estimated $1.8 billion or 7% of its total.
Adidas has yet to comment on the leftover Yeezys, though the company has taken other financial hits this year, such as profit warnings, a sales plunge in China, and the decision to stop business in Russia. To avoid additional financial damage, the company has announced plans to sell West's shoes without the Yeezy name.
The end of the Adidas-West partnership is indicative of the company's desire to protect its long-term financial future and its commitment to avoiding hate speech and other controversial topics. It is unclear what the future holds for the leftover Yeezys, but Adidas is taking steps to ensure that it is not overly reliant on the sneakers.