Adidas grapples with $1.3B in unsold Yeezy sneakers after breaking up with Kanye West
With the company no closer to a solution, the CEO promised"that the people that have been hurt by this will also get something good out of it and get donations and proceeds in different ways, shapes or forms."
But Adidas has more problems than a hoard of shoes it can no longer sell. Analysts reckon the Yeezy line comprised up to 15 percent of the company's net income, and the breakup itself cost more than $600 million in lost sales, leading to a net loss of more than $540 million for the year. Profit in Q4 2021 was around $225 million.
Adidas is now forecasting an operating loss in the region of $730 million for 2023. The last time Adidas reported an annual loss was 31 years ago. If the company ended up selling the shoes, which Gulden claims"so many companies" are lining up to buy, Adidas would still have to pay royalties to West. He insisted that rumors that the business is in talks to sell them"are not true."
Throwing in the towel somewhat, Gulden described 2023 as"a transition year," after which"we can then start to build a profitable business again in 2024.", and won 24 Grammys out of 75 nominations, thoughCommentators suggest that his 2022 freakout could stem from a deterioration in mental health precipitated by his divorce from Kim Kardashian, with whom he has four children.
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