Adidas brought in $437 million from the first release of Yeezy sneakers left over after breaking ties with Ye, the rapper formerly known as Kanye West.
FILE - A sign advertises Yeezy shoes made by Adidas at Kickclusive, a sneaker resale store, in Paramus, N.J., Oct. 25, 2022. Adidas brought in 400 million euros from the first release of Yeezy sneakers left over after breaking ties with Ye, the rapper formerly known as Kanye West, as the German sportswear maker tries to offload the unsold shoes and donate part of the proceeds to groups fighting antisemitism and other forms of hate.
“We will continue to carefully sell off more of the existing Yeezy inventory,” said CEO Bjørn Gulden, who took over in January. Adidas has already handed over 10 million euros to the groups and expected to give an additional 100 million euros, with further donations possible depending on how future sales go, Chief Financial Officer Harm Ohlmeyer said.
The first sale unloaded roughly 20% to 25% of the Yeezy sneakers that were left stacked up in warehouses, contributing 150 million euros of Adidas' 176 million euros in operating earnings in the April-to-June quarter. The blow-up of the Ye partnership put Adidas in a precarious position because of the popularity of the Yeezy line, and it faced growing pressure to end ties last year as other companies cut off the rapper.
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