Adidas’ Kanye test: New CEO has a R23bn pile of unsold Yeezy gear | Business

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Adidas AG shares slumped after the German shoemaker warned that it’s sitting on a €1.2 billion (R23 billion) pile of unsold merchandise after terminating its lucrative branding deal with rapper Ye. | News24_Business

The deal was cancelled in late October after the rapper made a series of antisemitic and racist remarks.Adidas AG shares slumped after the German shoemaker warned that it’s sitting on a €1.2 billion pile of unsold merchandise after terminating its lucrative branding deal with rapper Ye.

"It seems like the new CEO wants to set the bar low and take early action in 2023 to make the changes needed" to turn around the company, Cristina Fernandez, an analyst at Telsey Advisory Group, wrote by email. Gulden will also have to figure out whether Adidas can sell or repurpose Yeezy designs to customers without the brand name. It previously flagged that profit and revenue have been hurt by the damage from ending the lucrative line, whose shoes previously fetched hundreds of dollars.

"We need to put the pieces back together again," Gulden said."I am convinced that over time we will make Adidas shine again. But we need some time."

 

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_Business I can sell all those shoes within 3 months and still make the company a healthy profit. It's very easy... Send them to India and Africa... Buyers are always on standby for that type of merchandise.

_Business Ye is King and King is Ye!!!!

_Business Here here to the KING YE!!🙌🏽🙌🏽

_Business Donate to countries affected by earthquake and poor countries where people have no shoes!

_Business Lovely decision by Adidas, nice aim at their own feet🤡🤣🤣🤣🤣🤣 Nike is happy

_Business Fokken lelik

_Business Donate the shoes

_Business Adidas will sign a NDA with Ye and go on to sell the merch very silently. Even Russia and US are doing business together despite hostilities. Can’t let misunderstandings get in the way of business🤷🏾‍♂️

zakes_ngidi _Business Botsiful

_Business They will learn no to do things for social media in future

_Business Adidas made their biggest mistake, working with West. Their designs were perfect, West just designed a lot of crap. adidasUS

_Business Ugly as fck shoes

_Business That's some ugly fucking shoes 😵

_Business Good... they supported a racist

_Business Uzenzile akakhalelwa madoda 🤷🏾‍♀️🤷🏾‍♀️

_Business It makes one wonder how kak adidas shoes actually are, if you need to put a famous rappers name on them in order to sell them.

_Business 😂 And they thought they were hurting him 😂

_Business Love this❤️

_Business What did they think!!

_Business Cal ye back.period

_Business Why am I not feeling sorry for Adidas?

_Business What, where they thinking

_Business That’s what happens when you listen to sponsored outrage.

_Business Lots of kids in Africa that need shoes, Donate it.

_Business Ugly

_Business Go woke go broke...

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