Step forward for adidas Yeezy inventory
23/05/2023
Adidas terminated the formerly lucrative footwear partnership last October, pressing pause on sales.
However, when discussing last year’s annual results back in March, the group warned operating profit could decline by as much as €500 million if forced to simply write off its Yeezy inventory. Adidas had elected to continue with its order commitments, rather than cancelling them, to mitigate the risk to supply chain partners.
“After careful consideration, we have decided to begin releasing some of the remaining adidas Yeezy products,” stated chief executive, Bjørn Gulden.
“Selling and donating was the preferred option among all organisations and stakeholders we spoke to. We believe this is the best solution, as it respects the created designs and produced shoes, it works for our people, resolves and inventory problem and will have a positive impact on our communities.
"There is no place in sport or society for hate of any kind and we remain committed to fighting against it.”
The designs, both existing styles and new models initiated in 2022 for sale this year, will be sold exclusively via a dedicated Yeezy product page, joined by adidas’s Confirmed smartphone application from June 1.
Adidas subsequently intends to distribute “a significant amount” among anti-discrimination non-profits such as the Anti-Defamation League (ADL) and the Philonese and Keeta Floyd Institute for Social Change, it said.
“We thank [adidas] for their ongoing dialogue around their remaining inventory and their vested interest in tackling issues of prejudice and hate,” ADL chief executive, Jonathan A Greenblatt, commented, calling the business’ response to the Yeezy fall-out “exemplary and a model for other public companies to emulate”.
Adidas also shared that discussions regarding any further release of existing adidas Yeezy stock remain ongoing.
The company has invited organisations with proposals for projects “aimed at combating discrimination and hate through sports” to email changinglivesthroughsport@adidas.com to register their interest.
It does not expect there to be an immediate impact on its financial guidance for the current year.
Image: adidas.
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