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.”
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