Topics: Kanye West, News
Adidas might have to 'literally' burn up to USD $500 million (AUD $759m) worth of Yeezy sneakers.
The global footwear giant is staring down the possibility of a significant loss if they can’t sell the once highly regarded streetwear sneakers.
Just months after dropping their partnership with Kanye West, The Washington Post reported that CEO Bjørn Gulden signaled this month that the company might not sell its Yeezy inventory.
According to analysts, its entire Yeezy sneaker collection is estimated to be around USD $300 million to $500 million (AUD $455m to $911m).
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Last month, the German clothes giant reported that it was still contemplating how to rebrand the shoe.
But, whatever happens, it’ll still hugely impact the company.
In a statement, the company said: "Adidas today published its financial guidance for 2023. While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock.
"This would lower revenues by around €1.2 billion (USD $1.28 billion) and operating profit by around €500 million (USD $534 million) this year.
"Against this background, Adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023.
"The company’s underlying operating profit is projected to be around the break-even level.”
They added that if they couldn’t decide, ‘this would result in the write-off of the existing Yeezy inventory’.
So get those campfires and smores ready because The Washington Post reported that one of the options of getting rid of the remaining Yeezy stock was 'literally burning' them.
However, the CEO remained hopeful that the company could rebrand while becoming profitable again.
He added: "We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again. But we need some time."
In October, the company officially cut ties with the controversial rapper after he went on an anti-Semitic tirade, including a tweet that stated he would go 'death con 3 on JEWISH PEOPLE'.
Adidas issued a statement that read: "Adidas does not tolerate antisemitism and any other sort of hate speech.
"Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.
"After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies.
"Adidas will stop the Adidas Yeezy business with immediate effect."
UNILAD has reached out to Adidas for comment.
