Shortly after it was reported that leftover Yeezy inventory could lower Adidas’ revenue by $1.3 million USD, it’s now believed that the German sportswear brand and Kanye West (Ye) have reached a new agreement to sell the remaining $500 million USD Yeezy trainers.
The remodeled contract will reportedly focus completely on the sale of the existing Yeezy footwear line inventory and will not include the clothing line or any new designs.
Back in October last year, Ye received global criticism after a series of antisemitic comments, leading to a chain of events such as Balenciaga parting ways with the rapper, his G.O.O.D. Music label no longer being signed to Def Jam, and of course Adidas deciding to cut ties with the rapper.
As a result of dropping the controversial rapper, Adidas expected to take a big hit and reported more than $250 million USD in lost profit and $500 million USD in lost revenue.
Adidas CEO Bjørn Gulden, had this to say: “2023 will be a year of transition to set the base to again be a growing and profitable company. We will put full focus on the consumer, our athletes, our retail partners and our adidas employees.
“Adidas has all the ingredients to be successful: A great brand, great people, fantastic partners and a global infrastructure second to none. We need to put the pieces back together again, but I an convinced that over time we will make Adidas shine again. But we need some time.”
Since Ye and Adidas‘ 10-year partnership came to an end, Ye has made attempts to fine a new home for his brand, but has unsurprisingly been unsuccessful.
Adidas’ profits will still make a loss because of the Yeezy inventory the sportswear giants sit on, but those losses will not be nearly as damaging as first reported thanks to their new agreement with Ye to sell the leftover Yeezy footwear.
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