Adidas to Retain and Sell Remaining Yeezy Inventory Without Writing Off Losses

Adidas to Retain and Sell Remaining Yeezy Inventory Without Writing Off Losses

The Western Connect Magazine - Adidas to Retain and Sell Yeezy Inventory
Adidas commits to selling unsold Yeezy inventory at cost to recover from recent setbacks.

TWC Magazine – Adidas announced its decision not to write off the majority of its unsold Yeezy inventory, opting instead to sell the remaining shoes at cost. This strategic move comes in the wake of the brand’s split with rapper Ye, formerly known as Kanye West, following controversial remarks.

Previously considering a write-off of approximately 300 million euros ($325 million) in unsold Yeezy inventory, Adidas has pivoted its approach to recoup losses. The company’s operational profit for 2023 surpassed expectations, reaching 268 million euros, largely due to strong performance in its fourth quarter and the decision regarding Yeezy inventory.

Adidas CEO Bjørn Gulden emphasized consumer research indicating potential sales of the remaining inventory at cost in 2024. Consequently, only damaged or severely flawed inventory faces write-offs, underscoring the brand’s commitment to prudent inventory management.

In 2023, Adidas generated around 750 million euros in Yeezy merchandise sales, part of which was allocated to charitable causes like the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change. However, the company has not disclosed plans for charitable contributions from the remaining Yeezy sales in fiscal 2024.

Adidas’ stance on potential donations remains undisclosed, as the company refrains from assuming profit contributions from Yeezy in the upcoming fiscal year.

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