Adidas continues studying the future of YEEZY stock

After cutting ties with Ye, Adidas’ new CEO Bjørn Gulden is faced with the challenge of making the decision on what to do with the leftover YEEZY inventory.

Since the final breakup of the Adidas-YEEZY deal in October due to Ye’s anti-Semitic statements, the German company is still looking for the least damaging option to get rid of the leftover inventory valued at about $1.3 billion.

Last Wednesday 8th at an earnings conference, Bjørn Gulden, CEO of Adidas, was talking about this dilemma it is currently facing. Choosing the right decision, if there is one, is proving complicated for the company.

Selling the stock could severely affect the company’s reputation; donating the sneakers would be complicated due to their high resale value; and burning the inventory, in addition to the sustainability problem it poses, would be a heavy blow to the company’s balance sheet.

“If you can’t sell and you can’t destroy, what’s your option?” wondered Gulden. “That’s why we haven’t made a decision on it, because it’s a very complicated issue.”

Adidas has also explored the possibility of recycling the products for other uses such as building soccer fields, but Gulden has dismissed the idea of removing the YEEZY label and selling them under another name: “Trying to hide what they are would not be honest. It’s not an option,” he stated.

The option that seems most viable so far is to put YEEZY products on sale and donate the proceeds to charity.

The CEO cannot yet set a deadline for making this decision, and the annual report issued from Adidas contemplates that there is only a 15% to 30% chance that the company will find a way to sell the remaining YEEZY products.

“The inventory is there, it’s not running away,” Gulden said. “We shouldn’t make a decision just to please someone. We should make a decision when the consequences of that decision are the most positive we can make.”

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