Adidas Split With Kanye West A Costly One

Adidas' breakup with Ye, formerly known as Kanye West, is proving to be a pricey one.

Photo Insert: The company ended its nine-year partnership with the rapper last October because of his antisemitic remarks.

The company warned Thursday that it expected to lose $1.3 billion (1.2 billion euro) in revenue this year since it cannot sell the designer's Yeezy clothing and shoes, Nicole Goodkind reported for CNN Business.

The company ended its nine-year partnership with the rapper last October because of his antisemitic remarks. Adidas said its financial guidance for 2023 "accounts for the significant adverse impact from not selling the existing stock."

If the company can't "repurpose" any of the remaining Ye clothing, Adidas said that could cost the company $534 million (500 million euros) in operating profit this year.

Adidas said it also expects "one-off costs" of $213 million (200 million euros) because of a "strategic review" the company is currently undergoing. Not mentioned were potential issues with its Beyoncé-led Ivy Park brand.

The Wall Street Journal reported this week that sales of the once-trendy streetwear brand fell 50% last year to to about $40 million — way below its internal projections of $250 million.

The partnership is "strong and successful," Adidas told the journal in response. Shares of Adidas tanked nearly 10% in Frankfurt trading. Adidas' stock has dropped 45% over the past year.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic