Adidas is seriously considering the possibility of burning – literally setting fire to – its $500 million stock of Yeezy sneakers.
The footwear giant, which dropped its partnership with rapper Kanye West following anti-semitic remarks, could face a significant loss if it cannot sell the stock of once highly sought after sneakers.
CEO Bjorn Gulden reported to The Washington Post that the company might not be able to sell its Yeezy inventory this month. The entire Yeezy sneaker collection is estimated to be around $300 million to $500 million.
Whether or not the footwear company rebrands the shoe, it will still be massively impacted by the current inability to sell them. Publishing its financial guidance for 2023, the company revealed that not selling the shoes might lower revenues by around $1.2 billion and operating profit by around $500 million.
“Against this background, Adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023. The company’s underlying operating profit is projected to be around the break-even level.”
The Washington Post went on to report that one of the options of getting rid of the remaining Yeezys was to literally burn them. However, the CEO still remained hopeful that the company could successfully rebrand them whilst becoming profitable once more.