Adidas decides to sell Yeezy shoes for charity

According to multiple media reports recently, the German sports brand Adidas decided to continue selling Yeezy series products. But Adidas said that the company will donate the proceeds from the sale of Yeezy products to international charity organizations.

Adidas ended its nearly ten-year partnership with Kanye in October 2022. After stopping the sale of Yeezy, Adidas currently has about US$1.3 billion in Yeezy series inventory. If this part of the inventory cannot be sold this year, Adidas expects to respectively lose another 1.2 billion euros and 500 million euros in revenue and operating profit in 2023.

As of the fiscal year ended December 31, 2022, the weakness of the Greater China market and the "failure" of Yeezy business caused Adidas' operating profit to decline by 66.3% year-on-year to 669 million euros, and net profit fell by 70.4% year-on-year to 638 million euros. According to Morgan Stanley, Yeezy products generated nearly $2 billion in sales for Adidas in 2021, accounting for 8% of the company's total sales.

In the first quarter of 2023, Adidas's sales fell slightly by 0.5% to 5.274 billion euros (about 40.127 billion yuan). The gross profit margin fell from 49.9% to 44.8%, with a net loss of 30 million euros. Greater China's revenue fell by 12% year-on-year to nearly 884 million euros.