According to the report, Adidas surprised
Sneaker fans are clamoring for the last “Yeezys”
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After anti-Semitic statements, Adidas ends its collaboration with Kanye West. Initially, the company fears that it will not be able to get rid of the remaining stocks of “Yeezy” shoes. But according to a report, demand remains unbroken.
The first stock sale of “Yeezy” shoes exceeded Adidas’ most optimistic expectations, according to a report in the Financial Times. Customers ordered around four million pairs of the sneakers designed by controversial rapper Kanye West at the end of May/beginning of June, worth 508 million euros, the British newspaper reported, citing people familiar with the matter.
However, the actual sales were lower because Adidas was unable to meet the demand for certain models in some sizes. Adidas ended its long-standing partnership with Kanye West – who now calls himself “Ye” – in the fall after the US rapper made anti-Semitic statements following repeated verbal abuse.
Part of the proceeds will be donated
It was unclear for a long time how the Franconian sporting goods company would deal with the millions of pairs of shoes from the collection that had already been produced. The new CEO Björn Gulden announced in May that he would gradually put at least part of it on the market and donate a significant portion of the proceeds to organizations that fight against racism and anti-Semitism. If the shoes had been thrown away, Adidas would have faced write-offs of around half a billion euros.
With the successful start of the sales campaign, these worries disappeared, the report said. Adidas offered a total of 15 different models at the sales. The “500 Utility Black,” for example, was sold out in Europe within a few hours. “Yeezy” had been a bestseller since the collaboration with West began; sales were recently more than a billion euros a year, with high margins.
However, Gulden made it clear that Adidas did not want to make big profits from the sales. According to FT, the company wants to use the proceeds from the sale to pay Ye’s due royalties and cover the costs associated with the end of “Yeezy”. Adidas did not want to comment on the report and referred to the half-year figures, which are due to be published on August 3rd.
