Adidas and Kanye West’s partnership has come to an end, but the unsold Yeezys remain a headache for the German brand.
According to sources, Adidas still has $1.2 billion worth of unsold Yeezys and they’re not exactly sure what to do with them in their inventory. “We are working on different options,” CEO Bjorn Gulden said during an investor’s call last week. “The decisions are getting closer and closer.”
This isn’t the first time that Adidas has faced the challenge of dealing with unsold inventory. In 2016, the brand struggled to sell its popular Ultra Boost sneaker line, leading to a decline in sales and revenue. The company eventually recovered, but the situation with the Yeezys is more complicated as the shoes are closely associated with Kanye West’s brand and image.
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The decision to end the partnership with West came after a series of controversial statements made by the rapper last year.
Adidas stated that it was committed to promoting diversity, equality, and inclusion, and could not condone West’s views. Although the company had invested heavily in the Yeezy line and was initially successful, it became clear that the partnership was no longer tenable.
Adidas has not disclosed any specific plans for the unsold Yeezys, but there are a few options available to the company. One approach could be to discount the shoes significantly and sell them through their own channels, such as their online store or physical outlets.
Another option would be to donate them to charity or other organizations in need, although this could damage the Yeezy brand’s prestige and value.
Regardless of the outcome, the situation with the unsold Yeezys has put Adidas in a difficult position. The company must find a solution that balances its financial interests with its reputation and brand image.
