Adidas says it may write off remaining unsold Yeezy shoes after breakup with Ye

abcnews.go.com:

Adidas says it may write off the remaining 300 million euros ($320 million) worth of Yeezy shoes left unsold after it cut ties with rapper Ye, formerly known as Kanye West

FRANKFURT, Germany — Adidas said it might have to write off the remaining 300 million euros ($320 million) worth of Yeezy shoes left unsold after it cut ties with rapper Ye, formerly known as Kanye West. The company will decide in the coming weeks whether or not to do a third release of the shoes next year to generate more donations to groups fighting antisemitism.

The shoe and sports clothing company, which cut ties with Ye in October 2022 after he made antisemitic remarks online, has sold 750 million euros worth of the shoes in two stages earlier this year through Adidas smartphone apps and its website. Part of the profits went to groups like the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, run by social justice advocate Philonise Floyd, the brother of George Floyd.

The company included the possible write-off of the remaining Yeezy inventory in its outlook Wednesday for its earnings this year, narrowing its expected loss to 100 million euros from an earlier prediction of 450 million euros, thanks in part to the earlier two releases of Yeezy shoes. CEO Bjorn Gulden, who took over after the Yeezy breakup, is leading an effort to recover from the loss of the profitable Yeezy business.

The announcement from Adidas comes at a time of rising antisemitism and islamophobia after the outbreak of the Israel-Hamas war. Gulden referenced the “terrible circumstances” in the Middle East, saying some of the company’s more than 600 employees in Israel had been called up for military service and that “we, as a company, are