The company warned that it faces a more than $500 million hit to its operating profit this year.
The German sportswear giant is left with few good options for its Yeezy brand – a once-popular and lucrative segment of its business that was irrevocably tainted during West’s high-profile meltdown.
Adidas wouldn’t be the first company to torch its product. Several retailers, including Burberry, Coach, Victoria’s Secret, Louis Vuitton and Nike, have opted to destroy inventory that went unsold as a means of clearing surplus supply. Any effort to resell “zombie Yeezys” under a new label carries its own risks, according to Wedbush analyst Tom Nikic.
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