In an unexpected turn of events, German sportswear giant Adidas has received orders for 4 million pairs of unsold Yeezy shoes totalling 508 million euros ($565 million), far exceeding the company’s most optimistic forecasts. The unexpected surge in demand comes after a difficult period for the brand, which was rocked by an anti-Semitism controversy involving its former partner, Kanye West.
According to the Financial Times, the impressive number of orders for the first batch of Yeezy shoes has potentially saved Adidas from suffering significant losses on its remaining stock. To recall, Adidas discontinued the sale of Yeezy shoes in October, severing ties with Kanye West after he made a series of controversial and antisemitic remarks on social media and in interviews.
The decision to discontinue the highly profitable Yeezy line had a significant impact on Adidas’ first-quarter sales, resulting in a $440 million decrease. The recent surge in demand for the unsold trainers, however, has alleviated concerns at Adidas’ headquarters that Kanye West’s offensive comments and reduced marketing efforts could have rendered the Yeezy brand toxic.
According to the Financial Times, strong demand for the Yeezy shoes has boosted the brand’s prospects, indicating that customers are willing to separate the product from the controversies surrounding its former ambassador.
Adidas has yet to issue an official statement in response to Reuters’ requests for comment. Nonetheless, the company stated in May that it planned to donate a portion of the sales proceeds to organisations fighting antisemitism and racism.
According to the Financial Times, negotiations are underway to determine the exact amount that will be donated to individual charities. Adidas has chosen five charities in the United States and China as the initial recipients. Among the options being considered is making donations totalling more than 8.5 million euros to these charities, though no final decision has been made.
Furthermore, according to the report, the final amount donated from Yeezy sales is likely to be much higher, as Adidas is willing to allocate a significant portion of the profits generated from the Yeezy inventory to charitable causes.
Despite the controversy surrounding its former collaborator, the extraordinary demand for the Yeezy shoes demonstrates the brand’s enduring popularity. It also emphasises the importance of distinguishing the artist from the product, which many businesses face when dealing with the actions and statements of their high-profile brand ambassadors.
As the dust settles on this chapter of the Yeezy saga, Adidas will undoubtedly seek to balance addressing sensitive issues like racism and antisemitism while maintaining the appeal of its products to consumers worldwide. The unexpected success of the Yeezy shoes demonstrates the enduring power of a well-established brand, even in difficult circumstances.
