Adidas and Ye settle all claims, two years after stormy split

Sportswear maker Adidas has reached an out-of-court settlement with rapper Ye that concludes all claims connected to the company’s decision to end their partnership two years ago, according to Adidas’ chief executive.
“Both parties said we don’t need to fight anymore and withdrew all the claims,” CEO Bjorn Gulden told journalists in a call. The agreement didn’t include any payments, he added. “No one owes anybody anything anymore. So whatever was is history.”
The German company cut ties with Ye, previously known as Kanye West, following a rash of offensive behavior by the entertainer, including antisemitic comments. The Yeezy line accounted for about half of Adidas’ total profits before the split, according to analysts.
The sportswear company was stuck with some $1.3 billion of unsold Yeezy shoes and merchandise after the end of the partnership, and has been gradually selling it down ever since. It expects to be done with the brand by the end of this year.
The settlement comes as Adidas reported strong third-quarter growth across most regions in a sign that a revival plan led by Gulden is starting to work.
Earlier this month, Adidas raised its annual profit target for the third time, amid surging demand for its retro kicks. The company said it now expects to generate operating profit of around $1.3 billion, up from the previous forecast of around $1.08 billion.
Wind writes for Bloomberg.