The Big a’s decision to sell—rather than write off—remaining Yeezy inventory salvaged what would otherwise have been a disastrous 2023, but the view forward remains somewhat murky, especially in the U.S. market where high retail inventories are still an impediment to growth. North America was Adidas’ least profitable geography last year, generating just a 5.2% operating margin, as sales tumbled 19% in spite of the benefit from Yeezy. A conservative sell-in strategy to help wholesale partners clear high inventory was part of the cause.

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