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Adidas Surpasses Expectations with $565 Million in Orders for Unsold Yeezy Shoes, FT Reports

July 25, 2023

 

 

 

 

 

 

Photo Credit: Reuters

 

In a remarkable turn of events, sportswear giant Adidas has received an overwhelming $565 million worth of orders for its unsold Yeezy shoes, according to a report by the Financial Times (FT).

The unexpected surge in demand has caught the company by surprise, as it exceeds even their most optimistic forecasts for the Yeezy line. This unforeseen development comes after Adidas ceased sales of the Yeezy shoes following controversial comments made by rapper Kanye West (formerly known as Ye) last October, which included antisemitic remarks. The termination of the partnership had initially raised concerns about potential losses and the impact on the brand’s reputation.

However, the first batch of online sales has proven to be highly successful, potentially saving the company from having to write down a substantial amount on its remaining Yeezy stock. The boost in sales has alleviated fears at Adidas’ headquarters, as they had previously worried that the Yeezy brand might become too toxic for consumers due to the rapper’s past outbursts and a decline in marketing efforts.

While Adidas has yet to comment on the overwhelming response, sources indicate that the company is in a “quiet period” ahead of its quarterly results, scheduled for August 3.

In a bid to address the controversy surrounding the Yeezy line, Adidas had previously announced its intention to donate a portion of the proceeds from the sales to organizations combating antisemitism and racism. As discussions continue, the FT reports that the company has chosen five charities in the US and China to receive the donations. Although an initial amount of over 8.5 million euros has been proposed for the charities, the final figure is expected to be much larger, given Adidas’ willingness to contribute a significant share of the Yeezy inventory’s profits.

This unexpected surge in demand has also had a positive impact on Adidas’ financial outlook. Initially forecasting a loss for the year, the company’s decision to sell the unsold Yeezy shoes has turned out to be a strategic move, demonstrating the enduring popularity and appeal of the Yeezy brand in the market.

 

Source: Reuters/FT

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