After parting ways with rapper Kanye West following his antisemitic and offensive remarks made on Twitter, Adidas has a surplus of Yeezy merchandise inventory. The company could end up taking a $526 million financial hit due to the excess stock.
The sportswear company parted ways with Kanye West, who is also known as Ye, and his Yeezy apparel partnership in October following his antisemitic and offensive remarks made on Twitter.During its earnings call on Wednesday, new Adidas CEO Bjorn Gulden said it has not yet decided whether to sell off the Yeezy merchandise or destroy it and take the financial hit.
“[It’s] a very difficult, sensitive situation,” Gulden said. “And I can just repeat, if you look at [the Yeezy] business, there is no doubt that Ye is one of the most creative people that have ever been on the planet. I think the way this was taken to market is probably the best, I would say, go-to-market job that any brand has done.”The Yeezy brand accounted for $1.2 billion of Adidas’s sales last year, according to a reported analysis.
"It's a very complicated thing," Gulden said."It's one of the most difficult decisions that I've been part of." "As soon as we have enough facts that we can make a decision, we'll make a decision,” Gulden added regarding the future of the remaining Yeezy product.Gulden became CEO of Adidas in January, leaving sportswear competitor Puma to help build a sales comeback.
The CEO said rumors of Adidas joining forces with Ye again were false, noting that the Yeezy business was “now lost.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Adidas, hurt by unsold Kanye West Yeezy sneakers, posts $540M lossMore losses could be ahead as the company forecast a 500 million-euro hit to earnings this year if it decides not to repurpose the remaining Yeezy products it has in stock.
Read more »
Adidas to slash dividend after Kanye West splitAdidas will slash its 2022 dividend, it said Wednesday, warning a split with rapper and fashion designer Kanye West could push it to its first annual loss in three decades this year.
Read more »
Adidas to slash dividend after Kanye West splitAdidas is slashing its dividend as the company deals with fallout from ending its partnership with Kanye West.
Read more »
Adidas boss eyes turnaround after Kanye West splitAdidas will slash its 2022 dividend, the sporstwear maker said on Wednesday, after warning a split with the artist formerly known as Kanye West could push it to its first annual loss in three decades this year.
Read more »
Adidas earnings tank after Kanye West splitAdidas is still investigating former employees’ allegations that Ye created a toxic work environment and that the sportswear company knew about his problematic behavior and failed to protect workers.
Read more »
Adidas, burnt by Kanye West split, seeks a new focusAdidas , burnt by the end of its tie-up with the artist formerly known as Kanye West, needs a new focus but should think more tactically about fresh celebrity partnerships and not count so much on one personality, industry experts said.
Read more »