Adidas may sell its Yeezy sneaker inventory and donate the proceeds, as it grapples with the fallout from ending its Kanye West partnership
Adidas said revenue would decline by a single-digit-percentage amount in 2023 as it aims for a reset under“2023 will be a transition year to build the base for 2024 and 2025,” Mr. Gulden said. Resolving the inventory overhang will be a priority for this year, he said, with inventory levels having increased by half last year to just under €6 billion.
Adidas had originally forecast 20% revenue growth for the fourth quarter but reported only a 1% rise, because of the loss of the Yeezy partnership, a disappointing performance in China and a withdrawal from Russia. Adidas had reacted to the supply-chain turmoil of recent years by ordering more inventory further in advance, but was left with an excess once those blockages eased, Mr. Ohlmeyer said, adding that this was an industrywide phenomenon. Adidas typically orders about one billion items a year globally; this year it intends to order 800 million to avoid overstocking as it works to reduce inventory, he said.
Covid-19 lockdowns in China caused difficulties for the company, which had been hoping to stage a recovery in the country after a 2021 boycott over its stance on cotton produced in the Xinjiang region, Mr. Gulden said.
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