Adidas Says No to Trashing Yeezy. Hold onto your socks, peeps! Adidas just shook things up big time on Wednesday. Ready for it? They spilled the tea that instead of chucking a massive pile of leftover Adidas kicks into oblivion, they’re switching lanes – gearing up to sell those sneakers, at least enough to cover their costs. Why? Adidas is out here to bounce back from some losses, and this move is their undercover game-changer.
Behind the Scenes Drama
Now, let’s dive into the juicy deets. Adidas was flirting with the idea of doing a jaw-dropping 300 million euros write-off (that’s roughly $325 million) for those Yeezys that were gathering dust. Why the drama? Well, they had to cut ties with rapper Ye, aka Kanye West, thanks to some not-so-great remarks that got slapped with the antisemitic label.
Hold up a sec! Adidas just dropped a financial bombshell, revealing an operating profit of 268 million euros in 2023. Wait, weren’t they supposed to be in the red with a 100-million-euro loss? Turns out, Adidas is giving themselves a pat on the back for some savvy business moves during the fourth quarter and the decision to sell most of the leftover Yeezy stash.
The Big Reveal
Adidas spilled the beans officially, saying, “Hey, we’re not trashing tons of Yeezy stuff anymore.” Instead, they’re getting ready to sell the remaining Yeezy kicks, aiming to at least break even in 2024. CEO Bjørn Gulden chimed in, saying, “Our research shows we can move this leftover stash in 2024 without taking a hit. So, we’re only saying goodbye to the Yeezy gear that’s pretty much beyond repair.”
Cash Splash (with a Touch of Heart)
In the past year, Adidas hit the jackpot, raking in a cool 750 million euros from Yeezy sales. Drumroll, please – they didn’t just stash away the cash; they spread the love. Charities like the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, George Floyd’s brother’s gig, got a sweet slice of the pie.
What Lies Ahead
Here’s the kicker: Adidas isn’t making any grand promises about donating from the remaining Yeezy sales to charity this year. They’re keeping it cool, saying there’s “no assumed profit contribution from Yeezy” in fiscal 2024.
In a nutshell, Adidas is tossing out the old playbook for their pile of unsold Yeezys. No more waving goodbye to losses; instead, they’re eyeing a comeback by selling those kicks and recouping some losses. And you know what? With the vibe in the air, Adidas might just turn this Yeezy situation into a triumph. Get ready for the sneaker showdown of 2024!