adidas and Kanye West have reached an out-of-court settlement, ending all legal proceedings between the two parties. The German sportswear giant confirmed the settlement in a recent call with reporters, signaling a new chapter after a tumultuous period.
The legal battles began in 2021, when adidas ended its partnership with West’s Yeezy label following the designer’s public anti-Semitic comments. The split led to multiple lawsuits and created tensions that both sides have now decided to resolve. Adidas CEO Bjorn Gulden announced that there were no outstanding issues with West. “There are no outstanding issues and there’s no money going either way and we’re both moving on,” Gulden told reporters, according to Reuters.
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Gulden stressed that after reviewing the claims from both sides, they agreed that there was no need to continue the disputes. “When you put the claims on the right side and the claims on the left side, both parties said we don’t need to fight anymore and withdrew all the claims,” he explained.
In 2023, adidas began selling off some of its remaining Yeezy inventory, donating a portion of the proceeds to organizations supporting those affected by West’s comments. While the initial termination of the Yeezy partnership negatively impacted adidas’ financial results, the company has since shown signs of recovery. The company has strengthened other areas of its core business to offset the losses and regain momentum in the marketplace.
Earlier this month, adidas raised its financial guidance for the year after reporting better than expected third quarter results. Excluding Yeezy sales, currency-neutral revenues grew 14 percent in the quarter. The improved performance reflects the company’s successful efforts to move past the controversy and focus on growth.
