Adidas is reportedly still left with $1.3 billion worth of unsold Yeezy shoes following the October 2022 breakup with Kanye West.
As a result of its decision to terminate its partnership with the rapper, the German sportswear behemoth has had trouble repurposing unsold Yeezy merchandise.
According to NPR, Adidas still has $1.3 billion worth of unsold Yeezys and they’re not exactly sure what to do with them in their inventory, and they are gathering dust.
“We are working on different options,” CEO Bjorn Gulden said during an investor’s call last week. “The decisions are getting closer and closer.”
While Adidas may be struggling with unsold inventory, the hype around Yeezys remains high in the resale market.
According to CBC News, the resale market for Yeezys is thriving. Most Adidas Yeezys were originally marketed for $200 to $350, but resellers are now demanding upwards of $1,000 per pair.
Kanye lost Balenciaga and JP Morgan endorsements after his escapades in late 2022. Adidas, which cooperated with Kanye on his Yeezy shoe brand worth $1.3 billion according to Forbes, was one of the first to cut ties.
Angered by his remarks, a man destroyed his Yeezys. Kanye’s talent agency dropped him, and his self-documentary was shelved.
Adidas estimated in February to lose over a billion dollars by not selling existing items and another $500 million in profits. If Adidas doesn’t reuse Yeezy merchandise, sources indicate the loss may be substantially higher.
The Adidas-Kanye West business separation may hurt both parties financially, but it’s unclear how it will damage Yeezys’ long-term popularity. Regardless, Adidas and Kanye West’s relationship changed the sneaker market.
The beleaguered Yeezy designer recently has built a Yeezy location on the same block as the Adidas store on Melrose Avenue in Los Angeles, despite his failed partnership with the German sportswear juggernaut.
Kanye has denied being anti-Semitic, claiming that people are unfairly criticising him. His words have caused controversy and could harm his career. Spotify CEO labelled Kanye West’s anti-Semitic rants “awful” but refused to remove his music. Spotify, Universal, and Sony have criticised Kanye’s anti-Semitic remarks, and the music industry is trying to control the repercussions.
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