Adidas is said to have earned over half a billion dollars in sales earlier this year by selling unsold Yeezy shoes designed by controversial rapper, Kanye West.
This comes some months Adidas stopped selling Yeezy Sneakers after terminating highly profitable agreement and cutting ties with fashion designer and rapper Kanye West, now known as Ye after he made antisemitic comment.
Despite the controversy surrounding him, demand for the Yeezy shoes remained high, and the sales generated approximately $565 million from about four million orders.
The decision to discontinue West’s brand had significant financial consequences for Adidas. In the first quarter of 2023 alone, the company reported a loss of $440 million in sales.
Initially, Adidas estimated that not selling the leftover Yeezy merchandise would result in a revenue decrease of $1.33 billion and an operating profit decline of $554 million.
Adidas had planned to donate some of the proceeds from the Yeezy sales to organizations fighting antisemitism and racism.
The company is expected to contribute more than $9 million to five charities in the U.S. and China, according to sources familiar with the matter.
The loss of the Yeezy partnership was a major setback for West, as Adidas had been distributing his Yeezy brand since 2013, contributing significantly to his wealth.
Prior to the fallout, Kanye West was estimated to be worth $2 billion, but after the separation, his net worth dropped to $400 million, losing $1.5 billion.
Following the controversy, Adidas shareholders filed a class-action lawsuit against the company, claiming that Adidas knew about the potential harm West’s behavior could cause but failed to inform investors.
The lawsuit alleges that the company either intended to deceive investors or acted with reckless disregard for the truth.
Adidas’ next earnings report, scheduled for August 3, will be closely watched to assess the full impact of the Yeezy partnership’s termination on the company’s financial performance.
The fallout from this high-profile split remains uncertain as the brand’s popularity appeared unaffected by Ye’s remarks.
Thank you for reading this article on Hello Vybes. Kindly follow us on our other social media platforms ; Facebook, YouTube, Twitter, Instagram, TikTok for more videos and updates.
PAY ATTENTION: Our WhatsApp platform is currently under construction for you to receive daily exclusive contents and news about celebrities, Lifestyles, Business and Economy news around the world.
You can send your eyewitness story to 0553595035 via our WhatsApp
SOURCE: wwwhellovybes.com
{ “@context”: “https://schema.org/”, “@type”: “Article”, “mainEntityOfPage”: { “@type”: “WebPage”, “@id”: “https://hellovybes.com/adidas-reportedly-makes-over-560-million-off-kanye-wests-unsold-yeezys/” }, “headline”: “Adidas reportedly makes over $560 million off Kanye West’s unsold Yeezys”, “description”: “Adidas reportedly makes over $560 million off Kanye West’s unsold Yeezys – Adidas earned over half a billion dollars in sales by selling unsold Yeezy shoes”, “image”: { “@type”: “ImageObject”, “url”: “https://hellovybes.com/wp-content/uploads/2023/07/DC21F0F4-74A2-4ABC-A3A9-96C57309860B.jpeg”, “width”: “700”, “height”: “135” }, “author”: { “@type”: “Organization”, “name”: “Eben Mugeez” }, “publisher”: { “@type”: “Organization”, “name”: “Eben Mugeez”, “logo”: { “@type”: “ImageObject”, “url”: “https://hellovybes.com/wp-content/uploads/2022/12/logo.png”, “width”: “600”, “height”: “60” } }, “datePublished”: “2023-07-24”, “dateModified”: “2023-07-24” }
