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German sportswear giant Adidas has reported sales of €400 million ($440.7 million) from the sale of Kanye West’s Yeezy sneakers between April and June this year.
This marks the first release of the Yeezy sneakers following the termination of Adidas’ collaboration with Kanye West in October 2022.
Earlier this year, Adidas announced its decision to sell off the inventory of Yeezy sneakers made in partnership with West instead of disposing of them.
In May, the company’s CEO Bjorn Gulden revealed that they held an impressive inventory of 500 million Yeezy shoes worth more than $1 billion and planned to sell them off gradually. He also stated that a portion of the proceeds would be donated to organizations affected by Kanye West’s controversial statements.
The first batch of Yeezy sneakers, released in June, witnessed an overwhelming demand and swiftly sold out, leading to an operating profit of €176 million ($193.8 million) in the second quarter – exceeding initial projections.
The success of the initial sale saw approximately 20 percent to 25 percent of the Yeezy sneakers being cleared from warehouses, contributing €150 million ($165.2 million) to Adidas’ operating earnings in the April-to-June period.
Continuing with their philanthropic commitment, Adidas has already donated €10 million ($11 million) to the organizations impacted by West’s statements, and they plan to give an additional €100 million ($110.1 million) with the potential for further donations depending on the success of future sales.
Despite the remarkable first sale, Adidas has cautioned that it remains uncertain whether the upcoming releases will witness similar price levels and demand, as the first sale primarily included the highest-priced shoes, which drove the sell-out.
The second sale of Yeezy sneakers has already commenced, with eager fans and sneaker enthusiasts eagerly anticipating the opportunity to own a pair of iconic footwear. This indicates that West’s Yeezy line still holds immense commercial appeal despite the controversy surrounding the artist.
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