Adidas Considers $320M Write-Off of Unsold Yeezy Inventory Following Split with Kanye West

Adidas evaluates options for unsold Yeezys, including further sales and donations, amidst lowering of forecast losses following two successful sales of the product.

Adidas is considering a $320M write-off of unsold Yeezy inventory following the end of its partnership with rapper Kanye West, also known as Ye, amid controversial antisemitic comments made by the artist.
As part of efforts to offload the Yeezy inventory, Adidas launched two sales over the summer, earning approximately $813M in total; the company also donated some proceeds to charitable organizations.
Despite the successful sales, the discontinuation of the regular Yeezy business resulted in a nearly $480M drag on the year-to-year comparison during the first nine months of the year.
CEO Bjorn Gulden referred to a potential write-off as the 'financially worst case', however, no decisions have been made on this matter as the company continues to explore options for offloading the remaining inventory.
Hopes for further releases of the product in 2023 and potential subsequent donations from proceeds are under consideration; however, the company's financial forecast has been influenced by this uncertainty.