Adidas Sells Leftover Yeezy Shoes For $565 Million

Adidas Sells Leftover Batch Of Yeezy Shoes For $565 Million After Cutting Ties With Kanye West

Adidas struck gold with leftover Yeezy inventory that had piled up in warehouses following its ill-fated tie-up with the rapper formerly known as Kanye West — receiving online orders that totaled $565 million, according to the Financial Times.

The German sportswear brand put its first batch of Yeezys up for sale last month and sold off 4 million sneakers within 48 hours, people familiar with the sale told FT.

The sources added that surprisingly high demand for the sneakers — which were yanked off the market in October following Ye’s antisemitic remarks — meant Adidas wouldn’t be able to meet all the orders.

 

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However, the multimillion-dollar selloff means the company likely won’t have to take a big writedown on its remaining stock. Adidas has said that a significant portion of the profits from the June sale will be donated to five organizations that combat racism and antisemitism, including the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, founded by George Floyd’s brother.

Donations could exceed $9 million, FT reported, though a final decision hasn’t been made. Sources added that the final amount gifted to these organizations could be far greater as Adidas is prepared to pay out a “significant share” of the profit from its Yeezy sale, according to the outlet.

Ye will reportedly receive royalties on the sale, tough it’s unclear how much. Forbes estimated that Ye made $220 million annually from the partnership, which began in 2019.

Proceeds from the sale are also going to be used to pay costs associated with ending the partnership, including legal fees, closure of production capacity and laying off staff. Representatives for Adidas declined to comment.