Adidas set to lose $1.2 billion euros on unsold Yeezy inventory
Yahoo Finance Live anchors discuss Adidas's 1.2 billion euro profit loss stemming from unsold Yeezy inventory.
Video Transcript
[AUDIO LOGO]
BRAD SMITH: Adidas, their troubles with Yeezy-- the now shuttered Kanye West brand-- they continue. Adidas is set to lose 1.2 billion euros unless it manages to sell leftover products. And even at a lot of the resale retailers, you see these just sitting on shelves right now. I mean, I've kind of done an inventory check at a few of the Stadium Goods, The Flight Club spots, and I don't see them flying off shelves like they used to.
BRIAN SOZZI: Well, they were kind of cool, Brad. But you know what? Kanye West is not cool anymore for like 90,000 different reasons. So I'm not surprised to see them sitting on the shelf collecting dust.
JULIE HYMAN: I mean, let's be honest, they're ugly shoes. But ugly was cool for a little while because of his name attached to it. So once he was gone, they're certainly not selling because of aesthetics.
BRAD SMITH: Yeah.
JULIE HYMAN: Or sorry, just one person's opinion. But it sounds like Adidas has issues even absent the Yeezy inventory, right?
BRAD SMITH: Right. And I think this was their main-- one of their main lifestyle plays. The other, of course, being Ivy Park with Beyoncé. And--
JULIE HYMAN: Which also, reportedly, is not going great.
BRAD SMITH: Precisely. And so with that in mind, now it's, OK, as a brand, performance versus lifestyle, where do you prioritize?
