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Though adidas’ partnership with Ye ended in October last year, it seems that the German giant is still dealing with the fallout from the decision, as it recently revealed its financial results for Q1 of 2023. According to its latest reports, adidas saw a €400 million dollar YoY loss last quarter, largely down to the loss of its Yeezy brand.
While many people expected CEO Bjørn Gulden to reveal his plans for the remaining Yeezy stock, the reports made it clear that a decision had not yet been made. While the brand is still weighing up its options, it was reported that the brand should expect a revenue loss of €1.2 billion should it not opt to sell the goods. Failure to repurpose the existing Yeezy inventory would lower the company’s operating profit by €500 million this year.
It's not all bad news for the 3-Stripes though. Gulden revealed that the lifestyle category had suffered at the start of the year due to the limited stock of styles such as the Gazelle and Samba, but confirmed that it was working on scaling those offerings as the year progresses. He also highlighted that the brand’s partnerships with Bad Bunny and KITH had performed well, and reiterated its audience’s excitement for the upcoming Fear of God collaboration.
Though adidas predicts that 2023 will be a “bumpy year” it also describes the time as being a “transition to build a strong base for a better 2024 and 2025”. However, as the year goes on, it will have to come to a decision on the remaining Yeezy stock eventually, so stay tuned for more info as it comes in.
Up next, Kanye West held a super low-key Yeezy fashion show recently.
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