Home Share Market Adidas bags $565 million order for unsold Yeezy shoes – FT BY Reuters

Adidas bags $565 million order for unsold Yeezy shoes – FT BY Reuters

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Adidas bags $565 million order for unsold Yeezy shoes – FT BY Reuters


© Reuters. FILE PHOTO: Adidas Yeezy shoes are seen at a store on the day Adidas ended its partnership with American rapper and designer Kanye West, now known as Ye, in Garden City, New York, US, October 25, 2022. Reuters/Shannon Stapleton/File Photo

(Reuters) – Adidas has received orders for more than 508 million euros (about $565 million) for 4 million pairs of unsold Yeezy shoes, better than the company’s “most optimistic forecast,” the Financial Times reported on Monday.

The paper said strong demand for the first batch of online sales would potentially save the German sportswear company from taking a big cut on its remaining stock.

Adidas (OTC: ) stopped selling Yeezy shoes from its ended partnership with Ye in October after the rapper, formerly known as Kanye West, made a series of anti-Semitic comments.

The loss of the highly profitable line affected the company’s first quarter sales by approximately $440 million.

However, strong demand for the unsold sneakers has quelled fears at Adidas headquarters that the outbreak and marketing slump in recent days may have made the Yeezy brand too toxic, the FT said, citing sources.

Adidas declined to comment, saying it is in a “cool period” ahead of quarterly results due on Aug. 3.

The company said in May that it would donate part of the proceeds from the sale to organizations fighting anti-Semitism and racism.

Discussions are ongoing on how much will be donated to individual charities, reports FT, adding that the company has shortlisted five charities in the US and China as a first step.

“Discussions have been held on donating more than 8.5 million euros to five charities, but no decisions have been made,” the FT reported, citing people familiar with the matter.

The report states that the final amount donated from the sale will be huge as the company is willing to give away a significant portion of the profits from the Yeezy inventory.

Adidas had forecast losses this year before announcing its intention to sell off remaining Yeezy stock.

($1 = 0.8996 Euro)

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