After Adidas and Kanye West (now known as Ye) discontinued their partnership in October, the sportswear giant was left with a mountain of unsold Yeezy sneakers. As a company founded in Germany, attempting to directly profit from their $1.3 billion stock (after West’s antisemitic, comments) is simply not an option. Burning the remaining inventory also doesn’t add up, due to sustainability/environmental risks.
Donating the sneakers (or their sales) to charity has been considered. The resale value of Yeezy footwear has increased since the brand has been cut. The current CEO, Bjorn Gulden, recently told investors that Adidas is still weighing its options.
In the meantime, the company aims to slash its share price for 2023, reduce inventory costs altogether; and prepare to return to profit in 2024. At a press briefing, Gulden explained “You will see us invest in more sports… because that is the DNA of this company.”