Adidas quarterly earnings report for Q4 2024

Adidas Settles with Ye, Ending Lawsuits and Reporting €100 Million Boost

Oct 29, 2024, 04:12 PM

Adidas has reached an out-of-court settlement with rapper Ye, formerly known as Kanye West, announced during its earnings call on Tuesday. The settlement ends all legal disputes, including multiple lawsuits over the past two years stemming from the termination of their partnership in 2022 due to Ye's antisemitic rants. The German sportswear company had faced significant financial impacts, including a $600 million loss in sales during the quarter when the Yeezy line was halted and shareholder lawsuits over Ye's behavior. As part of the settlement, no money was exchanged between the parties. Adidas reported a €100 million boost from the agreement, unwinding previous provisions related to outstanding legal issues. The settlement concludes a tumultuous period for Adidas as it navigated challenges with unsold Yeezy inventory.