“It’s a smart and responsible move,” said Ed Stoner,a sportswear industry consultant who previously worked at Adidas,adding it “not only preserves the brand’s integrity but avoids a sustainability crisis.”
By selling some of the stock,the company is potentially minimising a $US700 million loss this year,but it is unclear how much stock will be sold and what proportion of the proceeds will be donated.
If the goods are sold,Ye will be entitled to previously agreed commissions – 15 per cent of turnover,according to media reports. Adidas has declined to comment on this.
Gulden defended Adidas’ years-long collaboration with the rapper,saying that “as difficult as he was,he is perhaps the most creative mind in our industry”.
Gulden said recently that he envied Adidas for the collaboration when he still served as CEO at Puma.
Also on Thursday,Adidas chief financial officer Harm Ohlmeyer said an internal investigation into alleged misconduct by Ye – including showing pornographic material,making anti-semitic remarks and harassing female employees – had not substantiated the allegations.
However,the investigation also concluded that the rapper’s erratic and sometimes inappropriate behaviour made for a challenging work environment at Adidas,Ohlmeyer said,adding the company was now in the process of implementing measures to prevent such problems from occurring in the future.
A lawsuit in a German arbitration court in which Adidas is seeking damages from Ye is still in the early stages and no financial sum has been determined,Ohlmeyer said.
Ye did not immediately respond to a request for comment on Facebook.
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First-quarter results – due to be announced on May 5 – will likely show a 4 per cent decline in net sales to $US5.07 billion,according to a company-compiled consensus.
But investors have high hopes Gulden can turn Adidas around. The stock has gained around 65 per cent since November 4,when Gulden was first floated as a successor to Rorsted.
“We will do everything to bring Adidas back to where it belongs,” Gulden,wearing a red tracksuit,told investors.