Adidas announced plans to launch a second wave of premium Yeezy sneakers after severing ties with artist Ye, previously known as Kanye West. The German sports apparel giant intends to sell off the unsold inventory while contributing to organizations committed to battling antisemitism.
Beginning Wednesday, the online sales will be available on Adidas’ website and smartphone apps, following the first wave of sales in May. Customers will have access to models such as the Yeezy Boost 350 V2, 500, and 700, in addition to the Yeezy Slide and Foam RNR.
Adidas severed its relationship with Ye in October following his antisemitic and offensive remarks on various platforms. This left the company with 1.2 billion euros ($1.3 billion) worth of unsold Yeezy merchandise, prompting the search for a responsible way to manage the stockpile.
Adidas CEO Bjørn Gulden stated in May that the optimal solution was to sell the popular sneakers and donate a portion of the profits, aiding both the disposal of the stock and contributing to societal good. The company engaged in dialogue with NGOs and groups adversely affected by Ye’s derogatory comments and actions.
The Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change will be beneficiaries of the Yeezy sales proceeds. The latter organization is led by social justice advocate Philonise Floyd, George Floyd’s brother.
Adidas products sold directly in North America will include blue square pins provided by Robert Kraft’s Foundation to Combat Anti-Semitism, as a show of unity against antisemitism.
The Anti-Defamation League commended the sale, describing it as “a thoughtful and caring resolution” for the unsold merchandise and welcoming the conversion of the consequences of Ye’s actions into societal benefits.
Adidas refrained from disclosing the number of shoes to be sold or the percentage of proceeds to be donated. When asked about Ye’s royalties from the sales, the company responded that it would fulfill contractual obligations and enforce rights but declined to provide further details.
Adidas reported on Monday that the first Yeezy sales positively impacted its preliminary financial results for the second quarter, leading to a revised annual forecast – from a high single-digit decline in revenue to a mid-single-digit decline.
Despite this improvement, the company expects an operational loss of 450 million euros (over $494 million) for the year, an improvement from an earlier projected loss of 700 million euros.
With its first-half earnings report due on Thursday, Adidas anticipates future Yeezy sales to continue enhancing its financial performance.
In conclusion, Adidas’s initiative to unload unsold Yeezy sneakers following the split with Ye indicates the brand’s effort to turn a challenging situation into an opportunity to support meaningful social causes. The measure not only aids in product disposal but also translates into actionable solidarity with the groups affected by antisemitism and other forms of prejudice. How the public will react to this unusual initiative remains to be seen, but the company’s expectations suggest optimism in the face of adversity.
