As the DAX group announced, it wants to donate a “significant” amount to selected organizations that fight discrimination and hatred, including racism and anti-Semitism. According to adidas, the announcement has no direct impact on the financial forecast for 2023.
The Yeezy sneakers have been waiting for their destination in department stores worldwide since the end of the cooperation. According to the group, it is currently being examined whether and when adidas will launch further products from its inventory.
The decision is relevant for the annual result. So far, adidas has announced a reported operating loss of a maximum of EUR 700 million for 2023 in the worst case scenario, including the non-use and complete write-off of the remaining Yeezy inventory.
At the group’s annual general meeting on May 11, CEO Björn Gulden had already promised the shareholders a solution through sales. Another option, such as burning the goods, is “not the solution”. “Because I believe that burning several million pairs is not the point,” Gulden told the shareholders. According to the CEO, the remaining stock of Yeezy shoes is worth around 500 million euros, “with a sales value well over 1 billion euros”.
“After careful consideration, we have decided to start selling a portion of the remaining adidas Yeezy products,” Gulden said. “Selling and donating was the preferred option for every organization and stakeholder we spoke to.”
adidas ended the lucrative Yeezy partnership with Kanye West in the fall after he publicly expressed anti-Semitism. Other inappropriate statements have been circulated from West. adidas shareholders have filed at least one class action lawsuit in the US alleging adidas failed to provide investors with early notice of West’s anti-Semitic remarks and “extreme behavior”. In addition, adidas failed to take “reasonable precautions to limit negative financial risk should the partnership be terminated due to West’s conduct.”
Ultimately, the adidas share rose by 2.01 percent in XETRA trading to EUR 162.22.
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