Adidas’s New CEO Has a $1.3 Billion Pile of Unsold Yeezy Gear
- New CEO Bjorn Gulden is also conducting a strategic review
- Shares slump as company lays out worst-case Yeezy scenario
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Adidas AG shares slumped after the German shoemaker warned that it’s sitting on a €1.2 billion ($1.3 billion) pile of unsold merchandise after terminating its lucrative branding deal with rapper Ye.
The German sneaker brand said that in a worst-case scenario, if it has to write off all existing Yeezy inventory, it faces an operating loss of as much as €700 million in 2023. The stock fell as much as 11%, and it has lost half its value since mid-2021.