Adidas has ended its partnership with Ye, also known as Kanye West, with “immediate effect.”

In a statement Tuesday, the sportswear maker said it “does not tolerate antisemitism and any other sort of hate speech” and said that his recent comments were “unacceptable, hateful and dangerous.” Adidas said they violated the company’s “values of diversity and inclusion, mutual respect and fairness.”

Sales and production of his Yeezy branded products have stopped as well as payments to Ye and his companies. Adidas said it will take a $246 million hit to its fourth-quarter sales.

Adidas has partnered with West since 2013, when the company signed his brand away from rival Nike. In 2016, Adidas expanded its relationship with Ye, calling it “the most significant partnership ever created between a non-athlete and an athletic brand.”

But Adidas put the “partnership under review” in early October after he wore a “White Lives Matter” T-shirt in public. The Anti-Defamation League categorizes the phrase as a “hate slogan” used by White supremacist groups, including the Ku Klux Klan.

Anti-Defamation League CEO Jonathan Greenblatt said Adidas’ decision is a “very positive outcome.”

“It illustrates that antisemitism is unacceptable and creates consequences. Without a doubt, Adidas has done the right thing by cutting ties with Ye after his vicious antisemitic rants,” he said in a statement. “In the end, Adidas’ action sends a powerful message that antisemitism and bigotry have no place in society.”

Shares of Adidas fell about 5% in Frankfurt. Adidas said it will release additional information about the financial implications of dissolving its partnership with Ye in its upcoming earnings report on November 9.

BREAKING: Adidas is terminating its partnership with Kanye West.

They say it will have a negative impact of up to ~$250 million on the company's net income in 2022. pic.twitter.com/Cih8VTjvB7

— Joe Pompliano (@JoePompliano) October 25, 2022