adidas made about $750 million thanks to the two Yeezy drops in 2023 and has decided to do another in hopes of a more successful financial quarter after being down 5% in Q4.
The initial decision to write off the remaining Yeezy stock would cost the company a hefty $300 million, so for the sake of staying in the green, another Yeezy sale make way more sense.
“Following the latest decision, the 2023 operating profit now only includes a low double-digit million amount of Yeezy-related inventory write-offs. Instead, the company plans to sell the remaining Yeezy product at least at cost in 2024,” the press release reads.
At last year’s adidas annual shareholder meeting, CEO Bjørn Gulden said the company tried thinking of ways to rid of the Yeezy stock. After deciding not to literally just burn it all, he decided to donate to organizations of those harmed by Ye’s antisemitic comments.
In the latest press release, Gulden says only the damaged Yeezy goods won’t make it to store shelves, helping the company at least recoup its production costs.
“Our consumer, retail and trade research has shown that we can sell this remaining inventory in 2024 for at least the cost price. This is why we have only written off inventory that was either damaged or very broken in sizes,” said Gulden.
Elsewhere in the press release projecting its 2024 plans, adidas promised to make the company financially sound again by harkening back to what made it one of the best athletic brands in the world. Previously, Gulden promised that 2023 was merely a “transition year.”
The report comes after its 2023 profits fell off a cliff, with a reported loss of about $540 million, credited to the then-inability of selling Kanye West‘s sneakers, rising supply costs and China revenue falling.
Yeezy fans rejoice. See how excited sneakerheads were at the last Yeezy sale below.
adidas Plans To Sell Off Remaining Yeezy Sneakers In 2024 was originally published on cassiuslife.com
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