Adidas Scores $565M in Online Yeezy Sales, Reducing Projected Losses

Adidas AG successfully offloads unsold Yeezy stock, securing a staggering $565M (€500M) in online orders. The windfall, achieved after severing ties with Kanye West, may reduce the expected operating loss significantly.

Adidas said the amount is for selling four million pairs of Yeezy shoes. This comes almost a year after it severed its ties with American rapper and businessman Kanye West, who now goes by "Ye."

According to CNN Business, the sudden strong sales of the remaining Yeezy pairs stored in Adidas' warehouse will likely help the company regain some of its losses.

With the recent sales from the discontinued deal with Ye, the sports apparel and sneaker manufacturer may reduce its expected operating loss to just $498.3 million.

In March this year, Adidas expects about a $775.1 million loss because of the unsold Yeezy items. It has ended its long-term partnership deal with the rapper due to his antisemitic remarks on social media.

Reuters mentioned that Adidas stopped the sale of the Yeezy shoes in October 2022, and the company incurred sales losses stated in its first quarter report. It revealed a $440 million loss a few months after ditching its collaboration with Ye.

The German firm is set to publish its quarterly results on Aug. 3 and may post lower-than-expected operating losses. Meanwhile, now that it could sell the remaining pairs of Yeezy shoes, Adidas is expected to donate some of the proceeds to organizations that fight racism and antisemitism.

"What we will try to do over time is to sell part of these goods and to donate the money to organizations that are helping us and that have been hurt by Kanye's statements," Adidas' chief executive officer, Bjørn Gulden, said in May. "When we will do that and how we will do that is not clear but we're working on it."

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