Adidas reaches out-of-court settlement with rapper Kanye West

MW Adidas reaches out-of-court settlement with rapper Kanye West

By Louis Goss

Adidas has reached an out-of-court settlement with Kanye West through which both parties have agreed to withdraw all legal claims linked to the sportswear company's decision to end its partnership with the rapper now known as Ye.

The German sportswear company has been embroiled in a long-running legal battle with Ye over its decision to end its partnership with the musician in October 2022 after he made a series of antisemitic remarks.

Adidas' out-of-court settlement with Ye saw both sides withdraw all claims, without any money changing hands.

"There isn't any more open issues, and there is no... money going either way, and we both move on," Adidas CEO Bjorn Gulden said on a call, according to Reuters.

"There were tensions on many issues, and... when you put the claims on the right side and you put the claims on the left side, both parties said we don't need to fight anymore and withdrew all the claims," Gulden added.

Adidas' decision to end its partnership with Ye in 2022 previously left the sportswear company with EUR1.2 billion ($1.3 billion) in leftover Yeezy-branded apparel from its nearly decade-long relationship with the rapper that it first signed in 2013.

The sports apparel seller's share price subsequently fell to years-long lows in the immediate aftermath of its decision to terminate its contract with Ye on concerns Adidas would be unable to sell its stockpile of leftover Yeezy branded clothes and sneakers.

Adidas on Tuesday separately posted a 10% increase in its third quarter sales to EUR6.4 billion as the company said it now expects to have sold all its remaining Yeezy inventory by the end of this year.

The sportswear seller's sales were boosted by higher sales in Europe, Latin America, Japan and South Korea, which helped offset a 7% drop in sales in North America, which was mainly driven by the decline of its Yeezy business.

Adidas beat expectations in posting net income worth EUR469 million, versus the EUR315.5 million expected by analysts polled by financial data company FactSet.

Adidas (XE:ADS) shares, listed in Frankfurt, increased 1% on Tuesday having gained 30% over the previous 12 months.

-Louis Goss

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October 29, 2024 07:44 ET (11:44 GMT)

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