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☆ Adidas will finally start to move its $1.3 billion mountain of unsold Yeezy sneakers within days
▼ + stars: | 2023-05-20 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +2 min

Adidas will start offloading its Yeezy stock worth $1.3 billion at the end of May. The company plans to donate proceeds to nonprofits including one run by the sister of George Floyd. Adidas struggled to work out what to do with Yeezy stock after severing ties with Kanye West. In a statement Friday, the company said it would release an initial batch of Yeezy stock at the end of May. "At a time when antisemitism has reached historic levels in the US and is rising globally, we appreciate how adidas turned a negative situation into a very positive outcome," he said, per the Adidas statement.

☆ Adidas to donate Yeezy proceeds to Anti-Defamation League and other NGOs
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +3 min

[1/4] Rapper Kanye West talks on the phone before attending the Versace presentation in New York, U.S. December 2, 2018. Adidas cut ties with West, who goes by Ye, in October after he made a string of antisemitic comments in interviews and on social media. The German sportswear maker was left with Yeezy shoes worth 1.2 billion euros ($1.3 billion). The value of Yeezy shoes in the resale market has rocketed since then, with some models more than doubling in price. Adidas said there could be further releases of Yeezy stock but no decisions have been made on timing.

☆ Adidas to start selling Yeezy shoes at the end of May
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

[1/4] Rapper Kanye West talks on the phone before attending the Versace presentation in New York, U.S. December 2, 2018. REUTERS/Allison JoyceFRANKFURT, May 19 (Reuters) - Adidas will start selling some of the shoes from its defunct Yeezy partnership with rapper Kanye West at the end of May, the company said on Friday, and plans to donate the proceeds to selected organisations combating racism and hate. The news fleshes out plans initially outlined last week and follows Adidas' move to cut ties with West over anti-Semitic comments made last year, leaving the German sporting goods maker with Yeezy brand shoes worth 1.2 billion euros ($1.3 billion). The initial sale of some of the shoes marks the first time the products have been available to customers since Adidas (ADSGn.DE) terminated the partnership in October 2022. Among others, planned recipients of the proceeds include the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change, Adidas said.

☆ Adidas will sell existing Yeezy items, donate some revenues
▼ + stars: | 2023-05-19 | by ( Jessica Golden | ) www.cnbc.com time to read: +2 min

Adidas said Friday that it will start selling Yeezy products later this month for the first time since it ended its relationship with rapper Ye in October. The apparel company cut ties with Ye, formerly known as Kanye West, after he made a string of hateful, antisemitic comments. "Selling and donating was the preferred option among all organizations and stakeholders we spoke to," Adidas CEO Bjorn Gulden said in a statement. Adidas' most recent earnings beat expectations, but were weighed down by Yeezy inventory piling up. Prior to the split, Adidas had said their partnership with Yeezy was one of the most successful collaborations in the history of the industry.

☆ Kanye West filed a trademark application for 'sock shoes' just days before Adidas said it would sell off unsold Yeezys for charity
▼ + stars: | 2023-05-14 | by ( Jyoti Mann | ) www.businessinsider.com time to read: +3 min

Ye filed a trademark application for "Yzy sock shoes," which may signal a future product release. It was filed only days before Adidas said it will sell its Yeezy stock and donate profits to charity. His holding company, Mascotte Holdings, filed the application to the US Patent and Trademark Office on May 4. A drawing with the caption "Yzy sock shoes" was submitted alongside the filing. In 2020, Ye's holding company also filed a trademark for Yeezy-branded cosmetics, makeup, and beauty products.

☆ Adidas will sell Yeezy shoes after all
▼ + stars: | 2023-05-12 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +2 min

New York CNN —Adidas has decided what it’s going to do with its unsold Yeezy merchandise. It had been under pressure from investors to determine what to do with merchandise after Adidas terminated its partnership with Ye, formerly known as Kanye West. Adidas (ADDDF) ended its almost decade-long partnership in October 2022 after Ye wore a “White Lives Matter” T-shirt in public. Losing the highly profitable Yeezy line hit sales in the quarter by around 400 million euros ($441 million), Adidas said during its earnings last week. Adidas said it “rejects these unfounded claims and will take all necessary measures to vigorously defend ourselves against them.”

☆ Ex-Yeezy COO says it's a 'smart move' for Adidas to sell leftover stock and donate proceeds to charity
▼ + stars: | 2023-05-11 | by ( Jyoti Mann | ) www.businessinsider.com time to read: +2 min

The former COO of Yeezy says it's a "smart move" for Adidas not to burn leftover Yeezy stock. Adidas said Thursday it'll sell its Yeezy stock and donate profits to charities hurt by Kanye West. Udi Avshalom, who worked at Yeezy between 2017 and 2022, told Insider that Adidas is making a "smart move." "I think Gulden's decision to donate to charities represented to those hurt by Ye's comments is proper," Avshalom, who is Jewish, told Insider. Adidas pulled the plug on its Yeezy partnership in October as a result of West's anti-semitic remarks on Twitter.

☆ Adidas will sell some leftover Yeezy inventory instead of burning it, CEO says
▼ + stars: | 2023-05-11 | by ( Jessica Golden | ) www.cnbc.com time to read: +2 min

Adidas intends to sell part of its leftover Yeezy inventory and donate the money to charities that were harmed by Ye's anti-Semitic comments, the company's chief executive said Thursday. Gulden took the helm of Adidas on Jan. 1, following CEO Kasper Rorsted's departure. Adidas' most recent earnings beat expectations but were weighed down by Yeezy inventory piling up. The company parted ways with Ye in October following months of bizarre behavior and antisemitic comments from the hip hop artist. The split left Adidas with inventory levels of $500 million worth of sneakers, with selling value of over $1 billion, according to the company.

☆ Adidas says it won't destroy its mountain of unsold Yeezy stock but plans to sell these items and donate profits to charity
▼ + stars: | 2023-05-11 | by ( Pete Syme | ) www.businessinsider.com time to read: +2 min

It was left with over $1 billion of Yeezy stock. Adidas CEO Björn Gulden told investors Thursday that it wouldn't destroy these items. Gulden spoke in German at the meeting; a translated version of his comments was shared with Insider by an Adidas spokesperson. Gulden then went on to say that Adidas plans to donate the profits from the sale of these items to organizations representing people who "were hurt" by West's comments. Earlier this week, the FT first reported that a top shareholder was demanding answers over Adidas' investigation into West.

☆ UK man pleads guilty to Twitter hack that compromised accounts of Joe Biden, Elon Musk
▼ + stars: | 2023-05-10 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

An image of new Twitter owner Elon Musk is seen surrounded by Twitter logos in this photo illustration in Warsaw, Poland on 08 November, 2022. LONDON — A U.K. man pleaded guilty to helping orchestrate a high-profile hack on the Twitter accounts of numerous celebrities and politicians including Elon Musk, Joe Biden and Kanye West. Combined, the charges carry a maximum sentence of 77 years, the Justice Department said. "O'Connor communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world," the Justice Department said Wednesday. "A number of Twitter accounts targeted by O'Connor were subsequently transferred away from their rightful owners.

☆ A major Adidas shareholder is demanding answers over the company's tumultuous relationship with Kanye West
▼ + stars: | 2023-05-09 | by ( Pete Syme | ) www.businessinsider.com time to read: +2 min

Adidas cut ties with Kanye West after his antisemitic rant last October. The company began an investigation into his behavior towards Yeezy staff last November. And now a top investor will urge Adidas to reveal the results in an annual meeting, the FT reported. According to Rolling Stone, West would scream and throw books across a room in 2020 as Yeezy staff said they feared for their wellbeing. Werning will urge Adidas to share the investigation's results "here and now" and demand the company "transparently clean up the scandal," the FT reported.

O'Connor pleaded guilty to charges including conspiring to commit computer intrusions, to commit wire fraud and to commit money laundering. O'Connor, who was extradited to the U.S. on April 26, will also forfeit more than $794,000 and pay restitution to victims, prosecutors said. Prosecutors said the schemes included gaining unauthorized access to social media accounts on Twitter in July 2020 as well as a TikTok account in August 2020. The July 2020 Twitter attack hijacked a variety of verified accounts, including those of then-Democratic presidential candidate Joe Biden and Tesla Inc (TSLA.O) CEO Elon Musk, who now owns Twitter. The alleged hacker used the accounts to solicit digital currency, prompting Twitter to prevent some verified accounts from publishing messages for several hours until security could be restored.

☆ Adidas’s New CEO Shows Good Form
▼ + stars: | 2023-05-05 | by ( Jinjoo Lee | ) www.wsj.com time to read: 1 min

Adidas Chief Executive Bjørn Gulden joined in January after the company suffered some major injuries. Photo: Marco Rosi/Getty ImagesAdidas ’s new chief executive officer, Bjørn Gulden , can’t quite hit the ground running yet, but his first move—setting a low bar—is turning out to be a pretty solid strategy for the company’s stock. These are still early days for the new CEO, who joined in January after the company suffered some major injuries: The fallout with Chinese consumers in 2021 from a dust-up over Xinjiang forced-labor allegations, and then a breakup with Kanye West last year. Mr. Gulden called 2023 a year of transition before the company can hit its stride again. One key goal is to reduce inventories—especially the piles of Yeezy products that Adidas has left over from its terminated partnership with Mr. West—and to lower discounts.

☆ Adidas shares gain on earnings but CEO warns of ‘bumpy year’ after end of Yeezy deal
▼ + stars: | 2023-05-05 | by ( ) edition.cnn.com time to read: +2 min

Losing the highly profitable Yeezy line hit sales in the quarter by around 400 million euros ($441 million), Adidas said, mainly denting revenue across North America, Greater China and Europe, Middle East and Africa. CEO Bjorn Gulden told reporters Adidas has narrowed down the options for the shoes, and it is getting closer to a decision. Quarterly operating profit of 60 million euros ($66 million) beat analyst expectations of 15 million euros. North America was the worst hit by the loss of Yeezy, with currency-neutral sales down 20% from last year. The “terrace” shoe style is doing well in all markets, and Adidas has started to make more Samba, Gazelle, and Campus shoes, Gulden said.

☆ Adidas still doesn't know what to do with its $1.3 billion mountain of unsold Yeezy stock, 6 months after cutting ties with Kanye West
▼ + stars: | 2023-05-05 | by ( Mary Hanbury | ) www.businessinsider.com time to read: +3 min

Adidas doesn't know what to do with its mountain of Yeezy stock. The company cut ties with Ye, formerly known as Kanye West, in October after a string of controversies, including numerous antisemitic comments. Adidas said it has already factored a 1.2 billion euro ($1.3 billion), sales loss into its annual guidance if it were not to sell the stock. "You cannot sell Yeezy for reputational risk reasons. Experts say that way around this could be to deface these products before donation to curb their resale value, though it would cost Adidas more.

☆ Adidas runs harder, but also stands still
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +2 min

That beat analyst expectations of 15 million euros, and was aided by double digit sales growth in Latin America and Asia. The good cheer partly reflects the low expectations of Adidas’s investors. They hold shares worth about half their mid-2021 level, and while sales globally didn’t fall 4% as forecast, they still dipped 1% year-on-year. Meanwhile, CEO Bjorn Gulden has to decide what to do with stacks of Yeezy trainers in storage ever since the company severed ties with the musician. Although certain products like Gazelle and Sambo are doing well, the 40% margins on Yeezy sales were ten times Adidas’s overall level.

☆ Adidas expects bumpy year despite sales beating forecast
▼ + stars: | 2023-05-05 | by ( Helen Reid | ) www.reuters.com time to read: +2 min

REUTERS/Shannon StapletonLONDON, May 5 (Reuters) - Adidas (ADSGn.DE) on Friday forecast "a bumpy year with disappointing numbers" ahead after a dip in first quarter sales for the German sportswear giant. Despite the 1% sales drop, operating profit of 60 million euros ($66 million) beat analyst expectations of 15 million euros for the company, which last year ended a partnership with Ye, the rapper formerly known as Kanye West. Losing the highly profitable Yeezy line hit sales in the quarter by around 400 million euros, Adidas said, mainly hitting revenue across North America, Greater China and EMEA. Sales were 5.274 billion euros, down from 5.302 billion euros in the first quarter of 2022. Adidas' gross margin fell to 44.8% due to the loss of Yeezy sales, higher supply chain costs and discounts.

☆ Adidas quarterly sales beat expectations despite Yeezy crisis
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: +1 min

The Yeezy crisis hit sales in the reported quarter by around 400 million euros ($441.56 million), Adidas said, mainly affecting revenue across the North America, Greater China and EMEA regions. North America was the worst hit by the Yeezy debacle, with currency-neutral sales down 20% from last year. Sales in Greater China fell by 9%, while EMEA sales increased 4%. Adidas reported an operating profit of 60 million euros, beating analysts' expectations of 15 million euros. Its gross margin fell to 44.8% due to the loss of Yeezy sales, higher supply chain costs and discounts.

☆ As sales decline, Adidas faces pressure to find Yeezy fix
▼ + stars: | 2023-05-04 | by ( Helen Reid | ) www.reuters.com time to read: +3 min

Gulden in March said the company could donate the proceeds of the Yeezy sale to charities, but Adidas has given no updates since. The Anti-Defamation League, an international Jewish non-governmental organisation based in New York, told Reuters it "stands ready and prepared to work with Adidas". The American Jewish Committee met with Adidas executives in December to discuss their commitment to reject antisemitism. Shareholders want Adidas to draw a line under the Yeezy episode and develop ways to reboot the brand. "Being successful with Yeezy probably made Adidas lazy on finding other growth drivers," said Cedric Rossi, nextgen consumer analyst at Bryan Garnier in Paris.

☆ The creator of a viral AI-generated Drake song says it's scary how easy it was to make the music sound real
▼ + stars: | 2023-05-02 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +3 min

A student behind some popular AI-generated music says it was easy to make the songs sound real. A student behind some of the popular AI-generated music on TikTok discussed how easy it was to make the songs sound real. Chavez has been going viral on TikTok for his AI-generated music over the last few months. Chavez runs acapella versions of songs through AI models that are trained to sound like famous musicians, The Verge reported. Another viral AI-generated song, "Heart on My Sleeve," which mimicked Drake and The Weeknd, went viral last month.

☆ Investors Sue Adidas Over Kanye West Collaboration
▼ + stars: | 2023-05-01 | by ( Joseph De Avila | ) www.wsj.com time to read: 1 min

Kanye West had produced the popular Yeezy collection for Adidas. Photo: Neilson Barnard/Getty Images for AdidasA group of shareholders is suing Adidas AG, alleging the sportswear company failed to warn investors it was aware of Kanye West’s antisemitic remarks and “extreme behavior.”The proposed class-action lawsuit, filed in U.S. District Court in Oregon on Friday, alleges former CEO Kasper Rorsted and Harm Ohlmeyer , the company’s chief financial officer, were involved in disseminating false and misleading statements about Adidas’s relationship with Mr. West, who legally changed his name to Ye.

☆ Adidas sued by shareholders over its failed Ye partnership
▼ + stars: | 2023-05-01 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +2 min

In the lawsuit, filed Friday in a federal court, shareholders allege that Adidas “routinely ignored” his behavior as early as 2018. They claim that senior executives “ignored serious issues” affecting the Yeezy partnership, namely his antisemitic remarks and troubling public comments about slavery. The lawsuit said that Adidas was aware of his behavior and that the company “failed to take meaningful precautionary measures to limit negative financial exposure” if the partnership ended. Adidas (ADDDF) ended its almost decade-long partnership in October 2022 after Ye wore a “White Lives Matter” T-shirt in public. Days later, Ye said “I can say antisemitic s*** and Adidas (ADDDF) cannot drop me” during a podcast taping.

☆ Adidas wants to move on from the Kanye West scandal, but investors are angry and suing
▼ + stars: | 2023-05-01 | by ( Matthew Kish | ) www.businessinsider.com time to read: +2 min

Investors sued Adidas over its failed Kanye West deal, arguing it didn't properly manage the risk. In the lawsuit, investors claimed Adidas "ignored serious issues" with regard to Ye's "extreme behavior," and didn't properly manage the resulting risks, including with inventory. If certified, the lawsuit would proceed on behalf of investors who purchased shares of Adidas between May 3, 2018, and February 21, 2023. In the wake of splitting with Ye, Adidas, under new CEO Bjørn Gulden, is focusing more on sports, including basketball and soccer, as Gulden works to reset the brand. The organization purchased 2,837 shares of Adidas stock in early 2022 for more than $350,000, according to an exhibit attached to the lawsuit.

☆ Adidas wants to 'double down' on U.S. market, regional head tells Wall Street Journal
▼ + stars: | 2023-04-30 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, April 30 (Reuters) - Adidas (ADSGn.DE), which has come under pressure after ending its lucrative Yeezy shoe partnership with Kanye West, is trying to grab a bigger slice of the U.S. sports market, the group's regional head told the Wall Street Journal. "We want to double down on all of the things that are U.S.-centric, particularly around sport," Rupert Campbell, the company's North America president, was quoted as saying in an interview. Apart from ending the Yeezy collaboration, Adidas has also stopped its Ivy Park collaboration with pop star Beyoncé according to media reports, with the contract set to expire at the end of this year. Talking on the overall U.S. sporting-goods market, the world's biggest, Campbell said: "We have to show our credentials in this space." Reporting by Christoph Steitz; Editing by Alex RichardsonOur Standards: The Thomson Reuters Trust Principles.

☆ A fake AI-generated Travis Scott album was taken off YouTube as the fight against AI music continues
▼ + stars: | 2023-04-27 | by ( Will Gendron | ) www.businessinsider.com time to read: +3 min

AI Hub is a Discord server housing over 36,000 members making AI music. Members from the group created "UTOP-AI," an AI album featuring the voices of Travis Scott and other artists. "I ain't talking Uber, come take a trip into my mind," croons Travis Scott on a song called "Winter Snow." Warner Music Group and representatives for Travis Scott did not immediately respond to Insider's requests for comment. The alarm bells sounding off in response to AI music have already been rung by the power players in the industry.

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