Adidas Plans to Liquidate Remaining Yeezy Sneaker Stock After Kanye West Split

Sportswear giant Adidas has announced its intention to sell the remaining stock of Yeezy sneakers, stemming from its terminated collaboration with rapper and fashion designer Kanye West, also known as Ye. The decision comes as the demand for Yeezy sneakers remains high, particularly in the resale market, despite the end of the partnership in 2022 following West’s controversial social media comments.

Adidas aims to sell the remaining Yeezy stock for at least the production cost, as revealed in a statement addressing the company’s financial performance. Last year, currency fluctuations, exacerbated by the discontinuation of the Yeezy business and reduced prices to clear excess inventory, cost Adidas €1 billion ($1.08 billion; £850 million).

Despite these challenges, Adidas reported an operating profit of €268 million in 2023, anticipating a nearly doubled figure for the current year. Chief Executive Bjørn Gulden, recruited from rival Puma in 2023 to lead Adidas’s turnaround after the Yeezy breakup, stated that the improved operating business contributed approximately €100 million to the positive outcome.

The decision not to write off €268 million of Yeezy inventory further buoyed Adidas’s financial outlook. However, even with the sale of some Yeezy stock last year, net sales from the partnership were approximately €450 million lower than in 2022.

Adidas acknowledged the potential for a €300 million write-off on its remaining Yeezy items but emphasized the goal of selling the remaining stock at production cost. The Yeezy partnership left Adidas with unsold sneakers worth around €1.2 billion.

The sportswear giant also revealed its vulnerability to currency devaluation, citing the impact of the Argentine Peso devaluation at the end of 2023. Adidas, a long-time manufacturer of Argentina’s national football team shirts, warned that the devaluation would continue to affect profits in the current year.

This announcement comes shortly after rival Puma disclosed that Argentina’s currency devaluation negatively impacted its financial results, given the region’s status as its largest and fastest-growing market.