Adidas will not cancel remaining Yeezy inventory
Shoes are offered for sale at the Adidas store in Chicago on February 10, 2023.
Scott Olson | Getty Images
Adidas announced Wednesday that it will not cancel most of the unsold Yeezy inventory and instead plans to sell the remaining shoes “at least” at the cost it paid for them, as the clothing retailer is looking to recoup their losses.
The German sportswear giant had previously considered writing off about 300 million euros, or $325 million, in unsold Yeezy inventory after the company cut ties with rapper Ye, known as Kanye West previously, over a series of antisemitic comments he made.
In its announcement, Adidas said it managed to generate an operating profit of 268 million euros in 2023 after initially predicting a loss of 100 million euros. The company attributed the profit to the “better-than-expected operating business” in its fourth quarter and the decision to sell most of the remaining Yeezy inventory.
“Following the latest decision, the 2023 operating profit now includes only a low double-digit million of Yeezy-related write-offs. in a press release.
CEO Bjørn Gulden said: “Our customer, sales and trade research has shown that we can sell this remaining inventory in 2024 for at least the cost price. “
Last year, Adidas sold around 750 million euros of Yeezy merchandise and donated some of the profits to organizations such as the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, an organization run by George’s brother Floyd.
It is unclear whether Adidas will provide any portion of the remaining Yeezy sales. The company said it has “no profit contribution from Yeezy” in fiscal 2024.
The company declined to say whether it would give more of the money this year.
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