Adidas Stuck With Yeezy Gear After Dropping Kanye West

Adidas Stuck With Yeezy Gear After Dropping Kanye West

Adidas on Wednesday said it was still weighing what to do with its huge inventory of Kanye West’s Yeezy products after it ended its partnership with the controversial rapper.

Potentially not selling the apparel and shoes linked to West would lead to a revenue loss of 1.2 billion euros ($1.3 billion), the group said, announcing its 2022 full-year results.

Adidas halted its tie-up with West — now known formally as Ye — in October after he made a series of anti-Semitic outbursts.

As a result, the group ended production of the highly successful Yeezy line designed together with West.

“Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward,” it would have to write-off the entire inventory, it said.

That would lower the company’s operating profit by an additional 500 million euros in 2023, it said.

Along with one-off costs projected to reach 200 million euros related to a company strategic review, Adidas said it could end up with an operating loss of 700 million euros in 2023.

Bjorn Gulden, the group’s new chief executive, said the company will use 2023 as a “transition year to build the base for 2024 and 2025”.

“We need to reduce inventories and lower discounts. We can then start to build a profitable business again in 2024,” he said

Idowu Babalola Photo
Idowu Babalola

Socially Not Social. IG & Twitter - @Idbragga

All author posts
Related Posts
Harrysongs Calls Out Instagram’s Management For Continuously Cutting Down His Followers
Harrysongs Calls Out Instagram’s Management...

Nigerian singer, Harrysongs has called out Instagram and its management for cutting down his followers. The singer who has...

I will hunt down anyone who falsely accuses any of my sons of r.a.p.e – Omoni Oboli vows
I will hunt down anyone who falsely accuses a...

Nollywood actress, Omoni Oboli has said she will hunt down anyone who falsely accuses any of her sons of...

Event: Industry Nite With Simi | Get Your Tickets
Event: Industry Nite With Simi | Get Your Tic...

The official listening party of the number 1 album in the country “Omo Charlie Champagne” by the amazing @symplysimi...

Write A Comments