Adidas to Sell Remaining Yeezy Stock at Cost Amid Financial Struggles

The sportswear giant aims to mitigate losses from its discontinued partnership with Kanye West, as it faces economic challenges and investor skepticism.

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.