Adidas Looks to Sell Part of Yeezy Stock, Donate Proceeds

   By Ulrike Dauer 
 

Adidas will try to sell part of the Yeezy stock and donate the proceeds, Chief Executive Bjoern Gulden said Thursday.

"When and how that will happen is not yet clear," the CEO said at the annual general meeting.

The decision will have an impact on full-year results, as Adidas expects that a complete write-off of the remaining Yeezy stock would, in the worst case, mean a reported operating loss of 700 million euros ($768.8 million).

In first-quarter results earlier this month, Mr. Gulden said that he sees three to four different scenarios regarding the Yeezy stock.

Last fall, Adidas ended the lucrative Yeezy-partnership with designer Kanye West after he publicly made anti-Semitic remarks, as well as other inappropriate statements. Adidas shareholders in the U.S. have filed at least one class action lawsuit, accusing the company of allegedly providing misleading information to the public in connection with the now-terminated business relationship with Mr. West.

The lawsuit claims that the company failed to inform its investors early on about Mr. West's anti-Semitic statements and his "extreme behavior."

Write to [e-mail]; @UlrikeDauer

(END) Dow Jones Newswires

May 11, 2023 08:17 ET (12:17 GMT)

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