Topline Adidas announced a second release of Yeezy inventory in August—following the sneaker’s successful stock sale in May—in a bid to handle the leftovers from 2022 after the shoemaker terminated its partnership with rapper and designer Kanye West.
Adidas plans Yeezy’s second phase of stock sales after making $565 million from its first leftover … [+] sales in May
Copyright 2022 The Associated Press. All rights reserved. Key Facts The sportswear giant’s August release will feature a range of existing products from last year, this time involving digital platforms of selected wholesale partners in addition to the Adidas website and mobile apps, the company said on Friday.
Earlier in May, Adidas sold off four million sneakers with online orders totaling $565 million (€508 million), according to the Financial Times, exclusively through the company website and mobile apps.
The company reported on Monday that it expects a full-year operating loss of $499 million (€450 million), down from the $772 million (€700 million) it previously forecast, thanks to the successful first Yeezy sale in May.
Available products for the August sale include some of the most popular designs, such as the Yeezy Boost 350 V2, 500 and 700 as well as the Yeezy Slide and Foam RNR.
Adidas announced it will also donate a “significant amount” from part of the proceeds to selected organizations fighting antisemitism and racism, which may top €8.5 million ($9.3 million) to five charities in the U.S. and China, people familiar with the matter told the Financial Times Monday.
Key Background The German shoemaker canceled its collaboration with Kanye West—who now goes by Ye—last October after he made antisemitic and racist comments on social media. After the termination left $1.3 billion worth of unsold Yeezy sneakers, the company said it has been “exploring multiple scenarios for the potential use” of the remaining Yeezy merchandise.
Crucial Quote “2023 will be a bumpy year with disappointing numbers, where maximizing our short-term financial results is not our goal,” said Adidas CEO Bjorn Gulden in the company’s first-quarter earnings announcement. He also said the loss of the Yeezy brand is “of course hurting us,” since sales in North America declined by 20% as “the region is particularly affected by the discontinuation of the Yeezy business.”
Further Reading Adidas Made More Than $560 Million Off Unsold Yeezy Shoes, Report Says (Forbes)
$1.3 Billion Worth Of Remaining Yeezy Sneakers Will Start Selling This Month, Adidas Announces (Forbes)