The fate of 1.2 billion euros ($1.3 billion) worth of unsold Yeezy stock is weighing on the German sportswear company as it tries to engineer a turnaround from the loss of the lucrative sneaker line and the continued fallout over its former ties to Ye.
Gulden, who became CEO in January after the Ye split, declined to say if destroying the shoes had been ruled out but that the company was “trying to avoid that.”
Losing the Yeezy brand is “of course hurting us,” Gulden said in a statement. The breakup will reduce earnings by 500 million euros this year if Adidas decides not to sell the remaining Yeezy stock, the Herzogenaurach-based company said.Article contentNet sales declined 1% in the first quarter, to 5.27 billion euros, and would have risen 9% with the Yeezy line, the company said. It reported a net loss of 24 million euros, a plunge from a profit of 310 million euros in the same period a year ago.
The company faces other problems tied to the rapper. Investors sued Adidas a week ago in the U.S., alleging the company knew about Ye’s offensive remarks and harmful behavior years before the split and failed to take precautionary measures to limit financial losses.Article content
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