In August, Adidas has revealed its plans to sell more of the Yeezy products that are currently in stock. The company has also restated its commitment to contributing a portion of the proceeds to support organizations fighting against discrimination and hate.
Previously, Adidas had halted the sale of Yeezy shoes and terminated its collaboration with the rapper Ye following a series of antisemitic comments made by the artist, formerly known as Kanye West.
The existence of a significant amount of unsold shoes from the once highly profitable Yeezy line has been impacting the company’s sales. However, the prospect of selling them off has now reduced the projected losses for the year.
In a statement, the company announced, “Today, Adidas has announced an additional release of YEEZY inventory, with a selection of existing products becoming available in phases throughout the month of August, globally.” As previously mentioned, Adidas is committed to making a substantial donation to selected organizations that work towards combating discrimination and hate, including racism and antisemitism. The specific organizations that will be supported are the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change. Additionally, Adidas expressed its support for Robert Kraft’s Foundation to Combat Antisemitism (FCAS).
While the exact amount of the donation was not disclosed by the company, it aims to offer some of the most popular existing Yeezy designs, such as the YEEZY BOOST 350 V2, 500, and 700, along with the YEEZY SLIDE and FOAM RNR.
Interestingly, unexpectedly strong sales of Yeezy shoes remaining from the previous Ye collaboration are likely to contribute to a reduction in the company’s operating losses for the current year.
According to recent reports, the potential impact of a Yeezy stock write-off is now estimated to be 400 million euros, which is lower than the previously expected 500 million euros.
While Adidas did not specify the exact percentage of its 1.2 billion euros worth of Yeezy stock that has been sold, industry analysts estimate that approximately 15 percent of it has been liquidated.