Adidas Plans To Sell Off Remaining Yeezy Inventory

Adidas has announced that it has opted to sell all of its remaining Yeezy inventory throughout 2024. This decision came after the company hinted at possibly writing off its remaining inventory in late 2023.

In a press release, Adidas explained that it has decided to sell all that remains of its inventory of the Kanye West-styled footwear throughout 2024. “The 2023 operating profit now only includes a low double-digit million amount of Yeezy-related inventory write-offs. Instead, the company plans to sell the remaining Yeezy product at least at cost in 2024,” the release stated.

The sale of the remaining Yeezy inventory is assumed to occur at least at the cost the company originally paid for them, aiming to recoup its losses, per CNBC. Adidas believes product sales will not affect the company’s operating profit during 2024.

In its statement, Adidas said, “For 2024, we expect sales to start flattish, but to then improve every quarter. We expect the underlying adidas business (excluding Yeezy) to grow in the high-single-digits for the full year and to be up at least 10% in H2.”

Back in October 2022, Adidas cut ties with Kanye West, now known as Ye, due to a series of antisemitic remarks on social media.

In a statement announcing the terminated partnership, Adidas maintained that the company does not tolerate antisemitism or any other sort of hate speech. It believed Ye’s comments and actions were “unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”

After terminating the partnership, Adidas also ended the production of Yeezy-branded products and stopped payments to Ye and his companies. Forbes estimated that Ye made as much as $220 million annually from his Yeezy partnership with Adidas.

According to Adidas CEO Bjørn Gulden regarding the remaining Yeezy inventory, “Our consumer, retail and trade research has shown that we can sell this remaining inventory in 2024 for at least the cost price. This is why we have only written off inventory that was either damaged or very broken in sizes.”

He also stated the company has “no assumed profit contribution from Yeezy,” but it is still unclear whether or not Adidas will donate any of the remaining Yeezy sales.