adidas Plans to Use its Yeezy Inventory in 2023

adidas plans to use its Yeezy inventory in 2023, per multiple reports.

The brand with the Three Stripes terminated its deal with Ye, formerly known as Kanye West, on October 25, 2022, following a handful of events that include publicly harassing adidas executives, spreading dangerous and harmful anti-Semitic remarks on social media and numerous podcasts, and suggesting that George Floyd wasn’t murdered to name a few.

Image via Brendan Dunne/Complex

During its Q4 earnings call on November 9, 2022, adidas expanded on the impact of the deal termination, stating that its net income for “continuing operations” to reach near €250 million.

adidas now expects currency-neutral revenues for the total company to grow at a low-single-digit rate in 2022.

The company’s gross margin is now expected to be around 47.0% in 2022. adidas now forecasts its operating margin to be around 2.5% in 2022 and net income from continuing operations to reach a level of around €250 million.

Statement via adidas

The brand will use its existing adidas Yeezy inventory in 2023. While its rebranding plans are still unknown, a name change (à la formerly-Kobe’s-now-adidas Crazy line) is expected at the very least.

?I can confirm that adidas is the sole owner of all design rights registered to existing product, as well as previous and new colorways under the partnership, and we intend to make use of these rights as early as 2023.?

adidas CFO Harm Ohlmeyer via Complex

Additionally, with adidas Yeezy branding only existing within the insoles and tags of the sneakers, the brand will most likely make minimal changes to its existing inventory, which retailers were asked to pull off the floor and send back.

While still unconfirmed, the adidas Yeezy 350 “Pirate Black” was slated to release in early 2023.

adidas also stated that it will be saving around €300 million in marketing and royalties in relation to Ye following the Yeezy deal termination, per Bloomberg.

Current adidas CFO Harm Ohlmeyer addressed some of the brand’s upcoming launches, including products centered around the 2022 FIFA World Cup and adidas Basketball.

We are encouraged by the enthusiasm for the upcoming FIFA World Cup which is already noticeable in our Football revenue growth. And in North America we are gearing up for an exciting upcoming basketball launch.”

Statement via adidas

Stay tuned to Nice Kicks as the story develops and for the latest industry news.

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