The German clothing giant will reportedly absorb a £217 million hit to earnings in 2022 alone, as a result of the decision to end the Yeezy brand collaboration.
It was put under review after West wore a “White Lives Matter” shirt at Paris Fashion Week, before then making antisemitic comments on his Twitter and Instagram accounts, leading to bans from the social media sites.
Adidas said West’s products will be pulled from sale with immediate effect.
In a statement on Tuesday, Adidas wrote: “Adidas does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.
“After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies. adidas will stop the adidas Yeezy business with immediate effect.”
Adidas’ decision comes after JP Morgan, Gap and Balencia ended their relationships with West earlier this October. It also follows the rapper and designer accusing Adidas of “stealing his designs” in a now deleted Instagram post.
Shares in Adidas were down almost 5% before the announcement was made by Adidas on Tuesday.