Overview

• Adidas plans to sell its remaining Yeezy inventory at cost in 2024, aiming to recoup losses from its severed partnership with Kanye West.
• The decision comes after Adidas faced significant financial challenges, including a €1bn loss due to currency fluctuations and a drop in operating profit from 2022.
• Adidas's 2024 financial guidance forecasts an operating profit of €500 million, less than half of analyst expectations, amid continued economic uncertainties.
• The sportswear giant had previously considered writing off the Yeezy inventory but now expects to generate around €250 million in sales from the remaining stock.
• Adidas's share price fell sharply after announcing its conservative 2024 projections, reflecting investor concerns over the brand's financial outlook.