sagnika sinha, 3 hours ago
The orders for Yeezy shoes accumulated to $564 million, which is quite high compared to the estimates made by Adidas. Yeezy shoes, which resulted from a collaboration between Adidas and Kanye West, were in the pipeline to be discontinued after the partnership ended.
Kanye West, who goes by the name of Ye, now had a successful collaboration for almost 7 years with Adidas, which was cut off after the celebrity rapper made antisemitic remarks. The issue, however, does not end with the partnership ending, as Adidas is now in a fix!
The German sportswear maker initially decided to create a sale event out of the leftover Yeezy shoes; however, increasing demands have made further issues. The brand might only be able to process some order requests for the Yeezy shoes facing a loss in revenue.
The company decided to manage the existing stock of the Yeezy shoes within the cost of $500 million. Shareholders, however, pressured the brand to change their decision instead of implementing a strategy to sell the products.
To this, the brand informed about their pledge to donate a part of the profits to fight off causes that fight racism and antisemitism. However, the company has not confirmed the amount donated to the causes from the profit.
FT has reported that the collaboration between Ye and Adidas has been profitable for both parties; however, without Ye, the clothing brand has generated almost $1.9 million in sales. The company’s operating profit concludes at $773 million; thus, the cut-off of the partnership is a loss for the brand.
The brand has also engaged in a legal battle with Ye as they have accused him of mismanaging the marketing funds virtually on the Yeezy project. There have been some issues with the money admitted by Ye. However, it has yet to be confirmed whether it was Adidas money.