HERZOGENRAUCH (dpa-AFX) - Clunky kicks or sneakers with style: opinions about the shoes from the cooperation between Adidas and U.S. rapper Kanye West differ - also for political reasons. The controversial artist came under heavy criticism for anti-Semitic statements. After considerable pressure from outside, Adidas ended the collaboration in October and stopped selling products from the "Yeezy" range. In the meantime, however, the Franconian sporting goods giant is doing business selling off the remaining stock - and has announced that it will be able to curb its expected annual loss, in addition to making a substantial donation from the sales proceeds.

After the end of the cooperation, the company initially sat on shoes worth hundreds of millions of euros. The common practice of destroying remaining stocks was strongly criticized by the public due to its lack of sustainability. Moreover, destruction would have burdened the annual result with 700 million euros alone. The expensive departure from the scandal rapper and his products has already caused the sporting goods manufacturer a loss of millions in the first quarter alone. The new Adidas CEO Bjørn Gulden decided in the spring to sell the products. Because of the pull, another difficulty is a class action lawsuit filed by investors in the U.S., who accuse Adidas of not responding in time.

Communications expert Thomas Koch also says Adidas was "a bit reluctant" to part ways with West. "Yeezy" meant billions in sales for Adidas, especially in the U.S., with a very high profit margin. One hopes for "positive transfer effects from star collaborations, one wants to profit from their charisma and hopes that this will transfer to the brand," says Koch, who researches corporate communications at Johannes Gutenberg University in Mainz. However, he adds, there is also a risk for companies that negative transmissions can result - as in the case of Kayne West.

"Adidas initially takes the standard route of first responding to a crisis and asks for a little more time," says Koch. According to studies, it is often enough for customers "to say we are against racism, against discrimination, we are for equality." It is a successful strategy to take a clear position on socially relevant issues, "which is what Adidas is doing with regard to racism," Koch emphasized. There was no other way to get out of the dilemma, so it was the best decision to sell on - especially when the amount donated was substantial, he said. "It's a way of trying to buy your way out a little bit."

The company is expected to report second-quarter financial results on Thursday. The Herzogenaurauch company had already announced Monday that its expected loss should be smaller for 2023 after the first "Yeezy" sales. Adidas expects a negative operating profit of 450 million euros for the year, down from an initial estimate of 700 million euros. Depreciation on the remaining "Yeezy" inventory is seen at 400 million euros, 100 million euros less than previously./scr/DP/zb