Kanye West's partnership with Adidas under review following anti-Semitic comments
Kanye West's anti-Semitic comments have led to several companies cutting ties with the rapper, with Adidas' partnership currently under review.
Video Transcript
DAVE BRIGGS: All right, one of the limits of cancel culture with every passing day and every deplorable anti-Semitic comment, Kanye West is testing its limits. Today, talent agency CAA cutting ties with Kanye. Fashion powerhouse Balenciaga did the same last week. Kanye ended his deal with CAP last month. GAP Brands decided to, quote, "wind down" the partnership in their eyes because their vision was not aligned.
What about Adidas, though? That is the question. The hashtag #BoycottAdidas is spreading on social media, but still nothing from the global shoe giant that's home to Yeezy sneakers. Kanye said recently on a podcast, "I can say anti-Semitic things, and Adidas can't drop me," end quote. Why can't they drop him?
Well, if that's the truth, it's because Morningstar analyst David Schwartz estimates Yeezy sales are around $2 billion annually. That is 10% of Adidas sales. So, Seana, it's easy to sit here in this seat on the financial journalist side of things and say, you have to cut ties with someone making these disgusting, deplorable comments day after day, but it ain't that easy when you're the CEO when you're sitting in the C-suite, and you know Yeezy sneakers are your window into a demographic you cannot otherwise touch, let alone 10% of your sales.
SEANA SMITH: I guess you could make that argument for now. One, I do think this backlash is going to pick up. I think Adidas is already under a tremendous amount of pressure to sever their ties with Kanye West. I am surprised that they haven't been more outspoken about this issue. The only thing that they have said is that their partnership is under review. And that was a couple of weeks ago. And we've heard Kanye West continue to make these types of anti-Semitic comments over the past couple of weeks here.
In terms of what this could mean for sales, I know you don't agree with me on this, but I would not be surprised if we do see a dropoff in these sales of Kanye's-- of Yeezy shoes. When it comes to Adidas, yes, right now, the Morningstar analyst estimated that it makes up about 10% of Adidas's sales.
Cowen was out with another estimate more recently, saying that they expect it to be around 8% of Adidas's sales. Maybe we will see the consumer speak up and the consumer no longer willing to buy Yeezys brand, willing to spend the money on his products. And of course, that could also have a massive impact on Adidas if, in fact, they do sit there and do nothing.
DAVE BRIGGS: Don't get me wrong. I hope you're right.
SEANA SMITH: I know.
DAVE BRIGGS: I fear you're wrong. I do have a window into Yeezy buyers. The teenagers that I know still love these sneakers. They are not as socially conscious as you might hope. They are teenagers. They are busy. And these sneakers are a status symbol, whether we like it or not. Now, hopefully, the pressure comes from the private sector, and they are forced to do something.
At least, say something, Adidas, that you condemn these morally reprehensible comments if you're not going to sever said relationship. That deal goes through 2026. It's got a lot of legs left on it. Will people stop buying these sneakers? They just came out with the new color in the past couple of days. I'm not entirely sold on that, but it will be one of the biggest stories in business in the weeks ahead.
