adidas and Yeezy’s relationship generated massive revenue before the dissolution of the partnership in October 2022. Following months of speculation on what to do with the over $1 billion worth of Yeezy sneakers, adidas decided to sell the remaining inventory and donate “a significant portion” of the proceeds to charity. According to the Financial Times, this massive sale (also referred to as Yeezy Day), which occurred from May 31 to June 2, garnered approximately $565 million in sales.
In the report, FT reports that 4 million pairs of sneakers were ordered. The overwhelming demand for these sneakers was so high in fact that adidas was unable to fulfill all orders, meaning that the net sales and number of sneakers shipped were lower than the reported totals.
The exceptional response from consumers has taken some pressure off adidas as the brand reported it may have had to write off the remaining Yeezy inventory, which would have led to its first operating loss in 31 years.
As stated earlier, proceeds from the sale were said to be shared among charities combating racism and antisemitism, and FT notes that “donations of more than €8.5mn (approx $9.5 million) across the five charities have been discussed but no decision has been made.” While the amount to be donated is yet to be finalized, adidas has committed to donating a "significant share" of the profits.
Taking the projected sales figures and amount donated (not accounting for any cancellations due to the aforementioned heightened demand), that would equate to adidas donating less than 2 percent of the revenue to charities.
The remaining Yeezy inventory will also be used to cover royalties to Ye and costs related to the termination of the partnership, which includes staff layoffs, production shutdowns, and legal fees. The next series of releases will take place in August and will see the first Yeezy product drop at retailers outside of adidas, including Foot Locker, for the first time since the partnership was terminated.
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Sneakerhead from South Florida who turned his passion into a career. Concerts, music, trying new restaurants, and catching the latest movies are some of the things I enjoy when not writing for Sole Retriever. Email: nick@soleretriever.com
