Adidas swamped with $565 mln in orders for unsold Yeezy shoes- FT

adidas-swamped-with-$565-mln-in-orders-for-unsold-yeezy-shoes-ft
Adidas swamped with $565 mln in orders for unsold Yeezy shoes- FT

Adidas received orders worth over 508 million euros (about $565 million) for 4 million pairs of unsold Yeezy shoes, surpassing the company’s most optimistic forecast, according to the Financial Times. This strong demand for the initial online sales could potentially prevent the German sportswear company from incurring a significant writedown on its remaining stock.

In October, Adidas ceased selling Yeezy shoes as part of its discontinued partnership with Ye, following a series of antisemitic comments made by the rapper formerly known as Kanye West. The discontinuation of this highly profitable line resulted in a decrease of around $440 million in first quarter sales for the company.

However, the robust demand for the unsold sneakers has alleviated concerns at Adidas’ headquarters that Ye’s outbursts and reduced marketing efforts would tarnish the Yeezy brand. Adidas declined to comment on the matter, citing a “quiet period” ahead of its quarterly results scheduled for August 3.

In May, Adidas announced its intention to donate a portion of the proceeds from the Yeezy sales to organizations combating antisemitism and racism. Discussions regarding the specific amount to be donated to individual charities are ongoing. As a first step, the company has selected five charities in the US and China. While a donation of more than 8.5 million euros across these charities has been discussed, no final decision has been made. The report suggests that the final amount donated will be much larger, as Adidas is willing to contribute a significant share of the profits from the Yeezy inventory.

Adidas had initially projected a loss for this year, but the decision to sell the remaining Yeezy stocks has altered this forecast.

($1 = 0.8996 euros)

Reporting by Bharat Govind Gautam and additional reporting by Juby Babu in Bengaluru; Editing by Savio D’Souza and Nivedita Bhattacharjee

Our Standards: The Thomson RushHourDaily Trust Principles.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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