Adidas is still debating what to do with the €1.2 billion (£1 billion) worth of shoes from Kanye West’s Yeezy line that has accumulated since the sportswear behemoth ended its partnership with the rapper last year.
Fans unfazed by Mr. West’s anti-Semitic remarks, which prompted the break, may still be able to purchase the merchandise.
Adidas CEO Bjorn Gulden stated that the company may sell the shoes and donate the proceeds to charity.
He stated that he had ruled out all other possibilities, such as burning them.
Mr. Gulden noted that the resale value of the shoes has increased, making it difficult to give them away for free.
According to John Mocadlo, the CEO of US footwear reseller Impossible Kicks, a pair of Yeezy 350 “Zebra” shoes now sells for between $340 and $360, up from roughly $260 four months ago.
Adidas cut ties with the rapper Ye in October, noting its opposition to “antisemitism and other forms of hate speech.”
After the artist, who has been diagnosed with bipolar disorder, displayed a “White Lives Matter” T-shirt design at Paris Fashion Week, prompting widespread outrage, the company reevaluated its nine-year partnership with the artist. Days later, he posted anti-Semitic comments on his Twitter account.
Adidas reported that the division cost the company €600 million (£534 million) in the final three months of 2022. It told investors that the deal’s termination could reduce profits by at least €500 million in 2023.
At a press conference held after the company updated investors on its performance in 2022, Mr. Gulden stated that if Adidas does sell the products, it will be required to pay Ye by its contract.
However, the company estimates that there is only a 15% to 30% chance that the remaining products can be repurposed.
Mr. Gulden, who was named CEO in November and started in January, called the deal’s termination “very sad” but necessary. He stated that he was still determining what to do with the unsold inventory.
“The inventory is there; it is not vanishing,” he said. “We should not make a decision just to satisfy someone. When the outcomes of a decision are as favorable as they can be, we should make it.”
He added, “There are so many people from diverse communities around the world who are interested in this.” “I’ve only been immersed in this for seven weeks. And I don’t feel qualified to make a decision based on the information I have.”
