Adidas Looks to Sell Part of Yeezy Stock, Donate Proceeds
11 May 2023 - 10:32PM
Dow Jones News
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 Ulrike.dauer@wsj.com; @UlrikeDauer
(END) Dow Jones Newswires
May 11, 2023 08:17 ET (12:17 GMT)
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