The German sporting goods group adidas continues to struggle with the legacy of the once lucrative cooperation with US rapper Kanye West, which ended after a racism scandal. “Burning several million pairs of shoes cannot be the solution,” quoted the German “Handelsblatt” adidas boss Björn Gulden at today’s annual general meeting.
According to Gulden, the company is working hard to find a solution for the remaining products from the expensive “Yeezy” line made with West. A sale with subsequent donation of the proceeds to those affected by the statements of the musician, who was once the guarantor of bubbling profits at adidas, seems conceivable. However, a final decision has not yet been made.
“Let’s be satisfied with ten percent”
Renouncing the cooperation with the US rapper after his sometimes anti-Semitic statements costs adidas sales of up to 1.2 billion euros and profits of up to 700 million euros.
Gulden announced that he wanted to bring the company, which had started to falter, back on course. However, he gave little hope of a quick correction. There is no point in announcing short-term successes. Instead, a reasonable margin must be worked towards in the long term. “Let’s be satisfied with ten percent, we don’t have to do 17 percent,” he emphasized with regard to the profit margin.
