Adidas will provide investors with an update on the unsold Yeezy trainers that have caused the German sportswear firm trouble since it severed ties with Kanye West due to his anti-Semitic remarks late last year.
When the company releases first-quarter results on May 5, which are anticipated to show a 4% fall in net sales to $5.07 billion, according to a company-compiled consensus, executives are anticipated to address the issue.
Investors are very optimistic that Bjorn Gulden, the new CEO, can revive Adidas. Despite Adidas's warning that it could incur a $700 million loss this year if it completely writes off the Yeezy shoes, the stock has increased by about 65% since Nov. 4, when the former Puma CEO was first proposed as Kasper Rorsted's replacement.
Since Adidas ceased making Yeezy shoes, their value has skyrocketed, with some versions more than doubling in price. Nevertheless, the firm has yet to decide what to do with its unsold inventory.
According to Holly Huffnagle, U.S. Director for Combating Anti-Semitism at the American Jewish Committee, a non-governmental organization, Adidas should donate any profits from the sale of the shoes to initiatives to combat anti-Semitism.