Adidas said it now expects to incur a significantly smaller full-year operating loss after making more than half a billion dollars in early sales of its Yeezy stock.
The German sportswear giant trimmed its operating loss forecast to €450mln from €700mln after selling US$565mln worth of Yeezy shoes which were part of rapper Kanye West’s clothing range with the company.
“If successful, potential future Yeezy drops would further improve the company’s results,” Adidas said in a statement.
Adidas had expected a potential write-off of €500mln for the remaining Yeezy stock, although this was also revised lower to €400mln.
West, who prefers to go by Ye, had his clothing and shoe deal terminated by Adidas last October after making a series of antisemitic comments.
Back in May, the company said it would donate some of the proceeds from the sales towards organisations that fight antisemitism and racism.
Discussions are currently ongoing with regard to how much will be donated to each of the five individual charities chosen.