Remaining YEEZY Inventory Projected to Lower adidas Revenue by $1.29 Billion USD
Projects, collaborations and products are subject to spontaneous cancellation for brands constantly. Whether it be the result of dropping a partner or simply not aligning with a brand’s direction, companies — and giants such as adidas (XETRA:ADS.DE -0.22%) especially — are used to calling audibles. However, when the Three Stripes decided to drop Ye and the YEEZY line, an unprecedented and cataclysmic shift occurred. Instantly, entire teams from designers to manufacturers were displaced and countless projects were dropped. Now, the many effects of these actions are being realized with frightening loss projections reported by The Business of Fashion.
Reports of an expected revenue reduction of €1.2 billion EUR (approx. $1.29 billion USD) resulting from unsold YEEZY inventory indicates that adidas is sitting on a massive amount of product. When news of the duo’s split hit headlines, the YEEZY line was at full-strength, pumping out releases and restocks constantly. Considering this — and the production cycle that goes into the process — it makes sense that a hefty backlog would exist.
What should adidas do and what will adidas do? Only time will tell as the Three Stripes navigates through this tricky transitional time. Stay tuned for more news as we eagerly anticipate the brand’s next move.