Adidas Dilemma: What to Do With $1.3 Billion of Yeezy Gear

Adidas reported its first annual loss in over 30 years, largely due to the discontinuation of the Yeezy product line. The company's revenue increased by 6%, with significant growth in Latin America and North America. However, challenges in Russia and a decline in China's revenue due to COVID-19 and local competition affected overall performance. Looking ahead, Adidas anticipates a revenue decline due to geopolitical and macroeconomic tensions. The Yeezy inventory remains a significant issue, with $1.3 billion worth of unsold sneakers. Analysts estimate a €500 million hit to operating profit, highlighting the impact on Adidas' financials.

What are the expected revenue trends for Adidas in the upcoming year?

What is the estimated financial impact of the Yeezy inventory on Adidas's profit?