It’s no secret that since Kanye West was fired from Adidas after his scandalous statement, Adidas hasn’t been performing well. More than that, they also recently enlisted the help of Puma, their old and historical rival. And It’s unusual because of the common history between Adidas and Puma. The two companies were both founded by two brothers who fought for a common brand they owned: The Dassler Company. After they separated from each other, Adolf Dassler created Adidas and Rudolf Dassler created Puma.
After that, they started fighting over shoes and sponsorships, making it the most famous war in sportswear history. But this help from Puma is only a small part of today’s topic since Adidas announced today that they lost 83% of the profits in 2022 and that it will be worse in 2023 due to the departure of Kanye West from the brand. But in more dire news, the brand could burn 500 Million dollars worth of Yeezys due to the end of their contract with the rapper.
MEGA
Adidas 2022’s Terrible Financial Results
The thing with Kanye West, when you work with him, is that you always have to be prepared for the unexpected. You never know what he might do or say in the future. And that is why most brands know that it is very risky to put all their financial strategy on it. That’s the main reason Louis Vuitton decided to hire someone like Pharrell Williams who might be, less impactful than Kanye West in terms of hype, but more modest and less risky in public.
And that is why Bjorn Gulden, the new head of Adidas, was not very happy during his annual conference in Herzogenaurach, Germany. Like every year, he reveals the financial results of the company and you think, this is not good at all. For the first time in 30 years, Adidas will lose a lot of money due to the early end of its collaboration with Kanye West. Because of that sudden ending, they found themselves with thousands of Yeezys they couldn’t sell, 1.2 Billion dollars worth of shoes to be exact.
yeezymafia / Instagram
And this event is something completely new in the history of fashion, nothing like this has happened before, so no one knows how to get out of this situation. However, Adidas recently decided to sign a final contract with Kanye West to allow the sale of Yeezy stock. Kanye West approved of that, and that’s how Yeezy should have ended up. However, contrary to before and because of its antisemitic statements, there is a possibility that not all the remaining products will be sold. And if It happens, Adidas will have to do something terrible.
Burn All The Remaining Yeezys
You read that right, that’s the only solution if there are still unsold Yeezys at the end of their last contract with Kanye West. Right now, Adidas is making an estimate of the remaining stock after the contract ends, and they have to burn $500 million worth of Yeezys out of the remaining $1.2 Billion worth of Yeezys. This means Adidas will have to burn almost half of the remaining stock at the end of the contract in a worst-case scenario where people don’t want to buy Yeezys, even at a lower price.
yeezymafia / Instagram
About the couple themselves, many rumors say different things. One of them said that these shoes will be the same Yeezys with the same branding that we have always known. Others say that the Yeezy branding will be removed from the shoes, making them worthless to many sneaker addicts who only buy Yeezys because they were designed by Kanye West. We don’t know which rumors are true, but if the Yeezy branding is no longer there, we understand that Adidas is worried about their sales, because these are not worth the same as before.
This “burning” operation seems extreme, but Adidas really thought about it because they had no other choice. Louis Vuitton and Burberry have already done it in the past to maintain the prestige of the brand, and they have been criticized a lot for it. Let’s see if Adidas will do the same or maybe give these Yeezys to people who need them, which could be something great coming from a sportswear company. But for now, the new head of Adidas announced that the brand will return to profitability in 2024. We don’t know how yet, but we can’t wait to see.
Categories: Trending
Source: thtrangdai.edu.vn/en/
