Should Adidas Continue to Brand Yeezys?

In a recent Q&A with the media during a quarterly earnings call, according to Business Insider, a reporter asked Adidas Chief Financial Officer Harm Ohlmeyer “If there was any reputational risk to the company if it continued to release Yeezy products despite no longer having the backing of the artist. ” Adidas plans to rebrand the Yeezy shoes and continue to sell them after it cut ties with Ye, the original designer, as it owns all design rights.

Ohlmeyer wasn’t ready to answer this question, only to reply, “We are working through all the options.”

Our analysis is that the partnership, which has been in place since 2013, is long-standing enough to enable Adidas to continue to sell the brand without further harm to its reputation. That’s not to say the shoes might not sell as well as they have in the last nine years. But we cannot underestimate the value and popularity of the Adidas brand itself prior to the now-terminated partnership.

Ye, aka the former Kanye West, is a critically acclaimed musician. Still, he has been divisive enough – most recently through antisemitic statements – that fans of the shoes and brand may appreciate the opportunity to be “freed” from the connection to him and still enjoy wearing the shoes. Smart messaging and careful branding could be an opportunity for Adidas.

Our analysis: Adidas is a long-standing brand and business that no doubt has rock-solid contracts in place, with appropriate legal protection. They and the sneaker – once rebranded – may even become a new symbol of inclusion and unity for those who oppose Ye’s actions. Although Darcey Jupp, an apparel analyst at GlobalData, said the opposite in an interview with CNN, we believe rebranding and continuing to sell the sneakers could be a smart move for Adidas from an ethical standpoint and a business viewpoint. We’ll be curious to see how they rebrand and message around the product line, and we will be watching.