Adidas CEO Bjørn Gulden has firmly rejected the notion of selling Yeezy products without the Yeezy brand, a possibility that had been suggested last November after the partnership with Kanye West (Ye) ended. During an earnings call, Gulden emphasized that detaching the Yeezy name from the shoes is not a viable option. He stated, “The Yeezy product is something that he created… To take his designs and sell them separately later, which we could do legally, is not aligned with our strategy.” Gulden’s focus is on minimizing damage, clearing inventory, and eventually establishing a Yeezy-free business.

“The Yeezy product is something that he created… To take his designs and sell them separately later, which we could do legally, is not aligned with our strategy”

Executives revealed that the initial Yeezy product launch generated sales of around 400 million euros (approximately $441 million) – accounting for 20% of total Yeezy inventory – and allowed the company to eliminate about 100 million euros in inventory-related costs. Despite plans to gradually sell off existing inventory, Adidas remains cautious about sales predictions due to the unpredictable nature of each product drop.

Adidas reported second-quarter earnings that were largely consistent with revised annual guidance. The company’s North American sales declined by 16%, though this would have been worse without the Yeezy inventory sale, which mitigated the decrease to 20%. Gulden expressed positivity about the core Adidas business, noting improved sell-through and stronger gross margin compared to the previous quarter.

The retailer maintained its projection of an annual operating loss of 450 million euros, down from the initial estimate of 700 million euros. Additionally, Adidas has yet to factor in the sale of new Yeezy merchandise set to be released throughout August. While Yeezy sales have provided some relief, the absence of this significant revenue stream presents a fundamental challenge for the brand’s future, according to GlobalData apparel analyst Alice Price. She further commented that Adidas needs to address its loss of identity and relevance in the market, as its product offerings lag behind trends and lack innovation compared to competitors.