German sportswear giant Adidas has reported better-than-expected early sales of its Yeezy stock, which it is selling off after cutting ties with collection creator Kanye West, also known as Ye. As a result, Adidas now expects a significantly smaller operating loss for the year, with the potential write-off from remaining inventory reduced to €400 million ($442.5 million) from €500 million ($552.3 million). The company has trimmed its operating loss forecast 2023 to €450 million($497 million) from €700 million ($773.2 million). Despite ending its partnership with Kanye West in 2022 due to offensive and antisemitic comments he made, Adidas aims to continue selling existing Yeezy inventory through further releases. The brand has previously announced that a portion of the proceeds from the Yeezy sales will be donated to groups, including the Anti-Defamation League and the Philonise and Keeta Floyd Institute for Social Change. The Yeezy brand had been a significant source of revenue for Adidas, generating nearly $2 billion annually, approximately 10% of the company's total revenue.
