In a surprising turn of events, Adidas successfully sold its first batch of Yeezy shoes after ending its collaboration with Ye (formerly known as Kanye West). The decision to sell the remaining Yeezy inventory proved to be a fruitful move as demand surpassed all expectations during the online sale.
SNEAKERS
Adidas terminated its partnership with Ye, in October, following controversial anti-Semitic remarks made by the rapper and fashion designer. To avoid potential losses, the sportswear giant opted to sell the unsold Yeezy sneakers instead of writing them off.
During the recent sale, which took place from the end of May to the beginning of June, demand soared to over €508 million for 4 million pairs of trainers, according to the Financial Times. The overwhelming interest led to challenges in fulfilling all orders, especially for specific sizes and models. However, the strong demand dispelled concerns that the Yeezy brand had been negatively impacted by Ye’s controversial statements and a lack of marketing in the past six months.
Ye’s Yeezy line had been a significant contributor to Adidas’s success, generating substantial sales and operating profit. Earlier this year, Adidas faced the possibility of its first operating loss in 31 years. However, the successful sale of the Yeezy inventory may prompt the company to update its revenue and profit guidance.
As part of its initiative to combat racism and antisemitism, Adidas plans to donate a significant portion of the proceeds to various charities, including the Anti Defamation League and the Philonise and Keeta Floyd Institute for Social Change. Discussions regarding the exact amount and distribution of donations are ongoing. Additionally, the company intends to use the proceeds to pay royalties to Ye and cover costs associated with ending the partnership, including layoffs and legal expenses.
Adidas declined to comment further, citing the quiet period before its half-year results are released. Despite the challenges posed by the split with Kanye West, the successful Yeezy inventory sale demonstrates Adidas’s ability to turn adversity into a triumphant accomplishment. With orders exceeding €508 million, the strong demand has proven the resilience of the Yeezy brand and its popularity among consumers.
