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· Posted on
February 21, 2024

Adidas' $2 billion of Yeezy Stock won't be burned... but will find new feet and make charities happy

Adidas has decided to sell the Yeezy stock... but donate the proceeds to international charities.

What's the key learning?

  • Adidas is facing a little dilemma: it still has $2 billion worth of Yeezy brand shoes collecting dust after they discontinued the line.
  • When a company has to discontinue a stock line unexpectedly, they need to make some tough decisions.
  • Adidas chose to sell the Yeezy's but donate the proceeds to organizations that Kanye West harmed with his comments.

👉 Background: Adidas had a long standing partnership with Kanye West or Ye that they cut-off last year over his anti-Semitic comments. As a result of this... as well as lockdowns in China, Adidas saw a $508 million worth of lossesin just the fourth quarter of last year.

👉 What happened: Now, Adidas is facing a little dilemma: it still has $2 billion worth of Yeezy brand shoes collecting dust after they discontinued the line.

👉 What else: So to toe the line between protecting their profits and holding up their values, Adidas has decided to sell the Yeezy stock... but donate the proceeds to international charities.

What's the key learning?

💡When a company has to discontinue a stock line unexpectedly, they need to make some tough decisions.

💡Adidas had a ton of options: they could've sold, donated, or burned all the shoes... But instead, Adidas chose to sell the Yeezy's but donate the proceeds to organizations that Kanye West harmed with his comments.

💡Funnily enough, back in 2013, Adidas' main competitor Nike found itself in hot water after ditching their Livestrong product line - which was a partnership with Lance Armstrong. This came after Lance Armstrong admitted to using performance-enhancing drugs.

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