Adidas has reached an out-of-court settlement with Kanye West, now known as Ye, effectively resolving their legal battle stemming from the company’s decision to terminate its partnership with the rapper in October 2022 due to his antisemitic remarks. Both parties have agreed to withdraw all legal claims without any financial transactions involved.

Adidas CEO Bjorn Gulden confirmed, “There aren’t any more open issues… and we both move on,” indicating a mutual desire to end the conflict. The split had left Adidas with approximately €1.2 billion ($1.3 billion) worth of unsold Yeezy-branded merchandise, causing significant concern about the company’s ability to manage its inventory and leading to a drop in share prices.

Despite the challenges, Adidas recently reported a 10% increase in third-quarter sales, totaling €6.4 billion, and expects to sell all remaining Yeezy inventory by year-end. The sales boost came from improved performance in Europe, Latin America, Japan, and South Korea, which helped counterbalance a 7% decline in North American sales.

This settlement follows a period of tension, marked by Ye’s public criticisms of Adidas over contract disputes and unauthorized use of his designs. However, with both sides moving forward, Adidas shares have shown resilience, rising by 30% over the past year.

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