Adidas suspends sale of Yeezy remainders for the time being
Adidas has temporarily halted the sale of Yeezy products by controversial scandal rapper Kanye West. After two successful waves, there will be no more this year, said Group CEO Björn Gulden on Wednesday.
The comparatively high-priced and trendy designer products once brought Adidas a turnover of 1.5 billion euros. After West's anti-Semitic remarks, the company parted with its guarantor of success. The products were stuck in the warehouses. So far this year, the sale of the remaining stock has brought in 750 million euros. Last year, the figure was 1.2 billion in the first nine months. In total, Adidas turned over 16.6 billion euros in the first nine months of this year - a drop of four percent compared to the same period last year.
In the course of the Yeezy sale, Adidas had pledged donations to organizations for victims of the Nazi regime. So far, 140 million euros have been made available, said Gulden. Whether there will be further sales in the coming year is unclear. "No decisions have been made yet." That the sales would remain suspended was an option.
Profit warning after separation from West
Adidas issued a profit warning at the beginning of the year after the separation from West and brought an operating loss of up to 700 million euros into play. The figure was later corrected to a loss of up to 450 million euros.
Adidas now expects a loss of 100 million euros due to lower depreciation and a better business performance. "Of course we know that our current performance is not good enough," said Gulden. The company is still struggling with high inventory levels. These have now been reduced by 23 percent to 4.8 billion euros - at the cost of high discounts in some cases.
Gulden emphasized that sales of retro shoes such as the Samba and Spezial models in particular were excellent. Significantly more could have been sold if the products had been available in sufficient quantities. The manager is thinking about expanding this line. The Franconian company is also expecting a boost from the major sporting events in the coming year, such as the Olympic Games in Paris and the European Football Championships in Germany. In addition, the recently difficult business in China - one of the most important markets for Adidas alongside North America - should pick up again.
In light of the suspension of Yeezy sales, Adidas may consider shifting its focus to other sporting goods, such as retro shoes like the Samba and Spezial models, to boost its retail trade. The company's suspension of Yeezy sales could possibly result in changes in its clothing and fashion offerings in the retail trade sector.
Source: www.dpa.com
