According to a statement, the company now expects an operating loss of around 100 million euros for this year. Previously, the expected loss was 700 million euros. That estimate was subsequently adjusted to a loss of 450 million euros in July.
Adidas broke off its collaboration with the artist a year ago after a series of anti-Semitic statements. But at the time, there was still a huge unsold inventory of the Yeezy merchandise the company had released with the artist. This made it appear that the company would have to depreciate the items significantly. But earlier this year, Adidas decided to sell some of its stock. A second round of sales of the surplus Yeezy line was announced in July.
Adidas has pledged to donate a “significant amount” of sales proceeds from the sneakers to charities working to combat discrimination and hate speech. The write-downs on the remaining Yeezy stock are now estimated at approximately 300 million euros. That is hundreds of million euros less than previously thought.