The sneaker giant warns it could incur its first annual loss in more than three decades over its now-defunct collaboration with Kanye West
Celebrities, political leaders and Jewish organizations condemned the artist and called out Adidas, which was slower to act than Ye’s other business partners. Balenciaga, JPMorgan Chase and other companies had ended relationships with him weeks earlier.At that point it faced a dilemma: What to do with roughly $500 million worth of shoes. Adidas said in February that it could lose 1.
2 billion euros in revenue this year if it couldn’t repurpose the merchandise. Industry experts said Adidas could sell rebranded shoes, liquidate them, donate or destroy them ― but that each option came with its drawbacks.Yeezy demand has surged 30 percentThe company now faces a projected 2023 annual loss of 700 million euros if it “irrevocably” decides not to sell any of its Yeezy inventory.
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