Strong sales of leftover Yeezy inventory is helping Adidas recoup some of its losses
Recent sales of the shoes left over from the abandoned collaboration with Ye, the rapper formerly known as Kanye West, should reduce Adidas’ expected operating loss to $498.3 million, the company said in a statement on Monday. Adidas initially announced in March that it expected to incur a $775.1 million loss due to unsold Yeezy sneakers and the cost of a strategic review following the end of the nine-year partnership which the company ended after Ye made a series of antisemitic remarks.
“Part of the sales will be donated to the organizations that are helping us and that were also hurt by Kanye’s statements,” Adidas CEO Bjørn Gulden said when he announced the release of the Yeezy inventory in May. In addition to the lower operating loss, the potential write-off for remaining Yeezy inventory decreased to $443 million. Adidas also said group revenue in the second quarter fell 5% to $5.9 billion and operating profit was still down from a year earlier at $194.
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