After months wrestling over the fate of millions of unsold Yeezy shoes, Adidas has decided to sell a portion of its remaining inventory and donate the proceeds to charitable organizations, CEO of the German sportbrand Bjørn Gulden said Thursday.
Adidas cut ties with Ye, the rapper formerly known as Kanye West, in late October, following his antisemitic comments on social media and in interviews. As a result, the fate of 1.2 billion euros worth of the unsold Yeezys, a lucrative sneaker line launched with Ye, was unknown.
“Burning those shoes cannot be the solution,” Gulden said, noting that Adidas was going to try to sell part of the remaining Yeezy inventory and “donate money to the organizations that help us and were harmed by what Ye said.” The move comes as Adidas is trying to stage a comeback and move beyond the Yeezy partnership. Cutting ties with Ye has cost Adidas hundreds of millions of dollars — with the company taking a loss of 600 million euros in sales for the last three months of 2022, helping drive the company to a quarterly net loss of 513 million euros.
Net sales declined 1 per cent in the first quarter, to 5.27 billion euros, and would have risen 9 per cent with the Yeezy line, the company said. It reported a net loss of 24 million euros, a plunge from a profit of 310 million euros in the same period a year ago.
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