Adidas has declared its intention to continue launching Yeezy products in 2024 despite previous conflicts with the brand’s former collaborator, Ye (formerly Kanye West).
Adidas intends to resume with Yeezy drops in 2024
The 2023 Adidas financial report highlights a year of strategic transition under new CEO Bjørn Gulden, which, under his stewardship, the brand has realigned its focus on inventory management and market adaptation.
The report disclosed significant financial figures from Yeezy sales, totalling approximately €750 million in 2023, and projects continued sales from these inventories in 2024 expected to generate around €250 million, albeit at no profit margin due to selling at cost.
In March, Adidas introduced several new and restocked Yeezy models, including the YZY Foam Runner in MX Granite colourway, and restocks of the Boost 350 V2 Beluga RF and Steel Grey, the YZY 500 Stone Salt, and the YZY Slide Dark Onyx.
Ye criticised Adidas following the new releases, accusing the company of moral hypocrisy and claiming theft of his creative work.
He alleged that Adidas had appropriated his designs and ideas during his time with them, which he said contributed to their decision to terminate their partnership based on a morality clause after his public controversies.
Following the cessation of its partnership with Ye in late 2022, Adidas retains the rights to existing designs and colourways.
The decision to proceed with Yeezy releases is part of Adidas’s broader strategy to manage high inventory levels and mitigate financial impacts from the previous year, aiming to generate around €250 million in sales in 2024 without expecting a profit contribution from these sales.
Adidas anticipates modest top-line growth in 2024 amidst persistent macroeconomic challenges and geopolitical tensions.
The company expects to face continued adverse effects from currency fluctuations but projects an operating profit of around €500 million for the year, based on the assumption of selling the remaining Yeezy inventory at cost.