Adidas announces intentions to offer the remaining Yeezy shoes for sale

Adidas is planning to sell its remaining stocks of Yeezy sneakers, which were part of its partnership with Kanye West, at cost price. The sportswear company severed ties with the rapper and fashion designer in 2022 after he made antisemitic comments on social media. Despite ending the partnership, the demand for Yeezy sneakers remains high in the resale market. Last year, Adidas suffered a €1bn ($1.08bn) loss due to currency fluctuations and the discontinuation of the Yeezy business. However, the company still managed to post an operating profit of €268m in 2023 and expects to double that figure this year. The CEO of Adidas, Bjørn Gulden, attributes the improvement to the better operating business and the decision to not write off €268m worth of Yeezy inventory. The remaining Yeezy stock will now be sold at production cost in an effort to recoup losses. However, there is still a possibility of a write-off, which could amount to around €300m. Adidas was also impacted by the devaluation of the Argentine Peso at the end of 2023. The devaluation, initiated by President Javier Milei, had a significant negative effect on the company's profits. Adidas has been the manufacturer of shirts for Argentina's national football team for many years. Last week, competing sportswear brand Puma also reported that Argentina's currency devaluation had impacted its financial results, as the region is its largest and fastest-growing market.