Kanye West has reportedly set up a location on Melrose Avenue in Los Angeles — on the same block as an Adidas store.
The Yeezy location features a 7,400-square-foot showroom and is two doors away from the Adidas store, Rap-Up reported Thursday (May 4).
It’s not known how the location will be used — whether as a showroom, office or retail store, according to the report.
The location hosted a secret Yeezy Season 10 fashion show Monday (May 1), the report said.
The fashion show displayed little in the way of new designs, instead featuring models in white T-shirts and black pants, a location with barren walls and no presence by West himself, Highsnobiety reported Thursday.
Highsnobiety referred to the location on Melrose as what was “rumored to be the location of Ye’s first-ever actual Yeezy retail store or at least a new Yeezy office.”
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Adidas joined other businesses and brands in severing ties with West, with whom it had a celebrity endorsement deal, in October amid the highly-publicized controversy around the musician-turned-fashion entrepreneur.
The company had said earlier that the Adidas-West partnership — which created the Yeezy sneaker collection — was “one of the most successful … in our industry’s history.”
Adidas detailed the impact of its split with Yeezy in a Friday (May 5) earnings release, citing “adverse Yeezy impact” alongside higher supply chain costs and negative foreign exchange (FX) movements as reasons for its decline in gross margins during the first quarter.
The company’s 20% sales decline in North America would have been only 5% if not for the impact of Yeezy, Adidas said in the release.
The discontinuation of the Yeezy business slashed 400 million euros (about $434 million) from the company’s top-line revenue during the most recent quarter, compared to a year earlier, with the impact being felt in the North America, Greater China and Europe, the Middle East and Africa (EMEA) regions, according to the release.
Gap, another brand that had a deal with West, reported in March that it incurred $53 million in impairment charges when West terminated his contract with the retailer due to alleged contract violations and insufficient creative control.
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