After severing relations with Kanye West a year ago, Adidas estimates that the company stands to lose almost $1.3 billion in sales as a result.

In a press release issued on Thursday, the company’s Chief Executive Officer Bjrn Gulden stated that the termination of the company’s working relationship with the rapper, 45, after he made a series of antisemitic comments in October is causing a “significant adverse impact from not selling the existing stock” of Yeezy inventory.

“The results of the calculation speak for themselves. At the moment, our performance is not as good as it should be “, he stated.

In November, during the company’s earnings conference for the third quarter, it was verified that Adidas “is the exclusive owner of all design rights” to the Yeezy brand. The business also said that in 2023, they would investigate how to repurpose the design in some manner.

Should this not be done, the operational profit of the brand might be reduced by around $534 million.

It is anticipated that the business would incur one-time charges of up to 213 million dollars as a result of the strategic evaluation that it is now carrying out in order to determine these costs.

According to the information provided in the news release, “if all of these consequences were to materialize,” the corporation would record an operational loss of $750 million.

“The year 2023 will be a transitional year spent laying the groundwork for the firm to once again be one that is expanding and making a profit. We will direct all of our attention on the customer, our athletes, our retail partners, and our own workers here at Adidas “said Gulden.

During the announcement that they were ending their connection with West, who now goes by the name Ye, the firm condemned “any kind of hate speech.”

The organization said that it will “halt the manufacture of items bearing the Yeezy brand name and put an end to all payments to Ye and the firms he owns. The adidas Yeezy line will be discontinued immediately after this announcement is made.”

When asked about it at the time, the business said that “Ye’s recent words and actions have been inappropriate, bigoted, and dangerous, and they contravene the firm’s principles of diversity and inclusion, mutual respect, and fairness.”