Sportswear giant Adidas AG
The Financial Times reported that there's an overwhelming demand for the first tranche of online sales, which is expected to save the Bavaria, Germany-based company from a large write-off on its stock.
Adidas had stopped selling Yeezy shoes after its partnership with rapper Kanye West, who now goes by Ye, ended due to the singer's antisemitic remarks.
Losing Yeezy had cost the footwear company a whopping $440 million in the first quarter of 2023.
In May, Adidas said it would sell some of the inventory as destruction would cost it about €500 million, and donate a part of the proceeds from the Yeezy sales to organizations fighting antisemitism and racism.
The company had previously said it is slated for a loss in fiscal 2023 - the first operating loss in 31 years, before opting to sell the remaining Yeezy stocks.
Thomas Chauvet, Citibank's head of luxury and sporting goods research, expects Adidas will update its revenue and profit guidance "to reflect the initial sale of Yeezy inventory."
Adidas will likely publish second-quarter earnings for 2023 on Aug. 3.
Price Action: ADDYY shares closed higher by 1.19% at $95.94 on Friday.
