If Adidas does not sell the existing merchandise associated with Ye, formerly known as Kanye West, the German company’s full-year revenue may decrease by 1.2 billion euros (about $1.28 billion), a profit warning issued on Thursday said. The loss may be even greater if Adidas does not “repurpose” any of the unsold Yeezy merchandise. Adidas had branded the merchandise associated with Ye as Yeezy.
The company cut ties with Ye after his antisemitic remarks created a global uproar and stunned the defining attributes of pop culture.
Adidas’ Yeezy crisis: What are company’s options?
Companies often consider reselling inventory at a discount, donating or upcycling when they are faced by the challenge of getting rid of unwanted and leftover products.
Experts cited in the US media say that the Yeezy challenge faced by Adidas is unique since enough reputational damage has been done by the man who was associated with its design.
“There’s no way to get out of this gracefully or profitably,” Matt Powell, a footwear retail expert who has worked with Adidas, was quoted as saying by NPR. “The question is, how can they lighten the bad things that are going to happen?”
The Yeezy line is also tricky to refashion because of its distinct designs.
Companies such as Burberry, Coach, and H&M have been criticised in previous years for disposing of wearable apparel.
“We have seen that happen with other luxury brands out there who didn’t want to see their product discounted at the end of the season,” Powell said.
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