In a new report from the Financial Times, Adidas reveals that its left with over $530 million worth of unsold Yeezy stock. The German sportswear company is now trying to find a way to sell the Yeezys but under the adidas name so it can cover the major loss in revenue.
Over the years, many of adidas’ own staff have criticized departing-CEO Kasper Rørsted for the company’s over-reliance on Yeezy, but lets be real, Adidas without Yeezy is.. not so good.
Rørsted set adidas up to fail as he fired key people and led with “management by fear,” causing a lot of adidas’ best talent to leave.
With Yeezy sales now disappearing from Adidas they are set to loose over half their 2022 revenue. Not to mention their loss of sales for one of their biggest countries (Russia)
In 2019, sales for adidas started slowing down but the Yeezy brand kept it going strong.
Adidas came out and disagreed with the gap stating they were growing in other areas and using different celebrities to not be so reliant on Kanye and the Yeezy Brand.
Adidas told the financial times Kanye was regularly reviewed as being a risk for the company, but its no secret why Yeezy was kept on the money was too good.
Yeezy was reported to contribute $1.8 billion in annual revenue, making up about 7% of adidas’ total profit.
“They did not give us enough of an indication of how big [Yeezy] was and how important it was to growth,” one analyst told the Financial Times. “Probably, they didn’t want to highlight how reliant they’ve become on the brand.”
The question is What will Adidas do with the remaining Yeezy stock? Most Yeezys are only branded on the box and inner sole so it may be not as big of an issue as you think..
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