Only a few days had passed since Adidas released its 2023 Q1 financial results, in which the brand continued to voice uncertainty about what it plans to do with unsold Yeezy sneakers. Now, the Three Stripes has finally shared more concrete information about how it plans to move forward with the leftover inventory.
Adidas CEO Bjørn Gulden said at Adidas’ annual shareholder meeting today that the brand plans to sell its remaining Yeezy sneakers and donate a portion of its proceeds to charity. Kanye West, the man behind the defunct Adidas Yeezy line, will reportedly be entitled to 15 percent of sales, as previously agreed upon in their contract.
Gulden also confirmed the sportswear giant had spent several months evaluating its options, including possibly destroying the remaining inventory entirely, but told investors that “burning several million pairs [of shoes] does not make sense.”
“What we are trying to do now over time is sell parts of this inventory and donate money to the organizations that are helping us and that were also hurt by Kanye’s statements,” Gulden said.
Following its fallout with Ye in October 2022 after the artist spent months criticizing the brand and expressed antisemitic views in interviews and on social media, Adidas reported it had lost $441 million in the last two quarters due to the discontinuation of its Yeezy business. By selling off its remaining Yeezy stock, the company would potentially reduce its $700 million loss this year.
Despite unveiling its decision to sell its remaining Yeezys, Gulden said Adidas is still ironing out the details on how and when the sale of the sneakers will materialize.
