Adidas ended its collaboration with Ye at the end of October last year after he made anti-Semitic statements. It was then left saddled with a large stock of Yeezy sneakers. Ultimately, Adidas decided to sell parts of the collection, which raised 750 million euros this year. Part of the proceeds goes to charity.
It is not yet clear what will happen to the rest of the collection, but no more Yeezy products will be on sale this year, CEO Bjorn Gulden said on Wednesday. The potential depreciation of the collection is 300 million euros.
Investors are increasingly starting to look at how Adidas is performing separately from Yeezy, as a signal of how successful Gulden is in its efforts to reinvigorate Adidas. Turnover fell by more than 6 percent in the third quarter to 6 billion euros, although without Yeezy and without exchange rate effects, there was an increase of 2 percent, mainly due to sales of popular, classic sneakers such as the Samba and Gazelle. Net profit fell by a fifth to 280 million euros.
Adidas repeats its forecast of an operating loss of 100 million euros this year. That would be the first loss for Adidas in at least thirty years. “We know that our current performance is not good enough, but we have said from the beginning that we need time to bring the brand and the company back to where they belong: at the top,” says CEO Gulden.