In June 2023, Adidas announced that it would be donating a portion of the proceeds from the sale of its Yeezy sneakers to anti-hate groups. The company had recently ended its partnership with Kanye West, the rapper and fashion designer who had created the Yeezy line, and was looking to offload the remaining inventory of unsold shoes.
Adidas said that it would donate 10 million euros ($120 million) from the sale of the Yeezy sneakers to three organizations: the Simon Wiesenthal Center, the Anti-Defamation League, and the National Urban League. The donations would be used to support the organizations’ work in fighting antisemitism, racism, and other forms of hate.
The decision to donate the proceeds from the Yeezy sale was met with mixed reactions. Some people praised Adidas for its decision to use the money to support anti-hate groups, while others criticized the company for profiting from the sale of shoes that had been designed by a controversial figure like Kanye West.
Despite the mixed reactions, Adidas’ decision to donate the proceeds from the Yeezy sale was a significant move. It showed that the company was committed to using its platform to fight hate and promote tolerance. It also sent a message to other businesses that they could use their profits to make a positive impact on the world.
In the months since the announcement, Adidas has continued to sell off its remaining inventory of Yeezy sneakers. The company has said that it expects to donate an additional 100 million euros ($120 million) from the sales to anti-hate groups.
The donation of $120 million to charity by Adidas is a significant gesture that will have a real impact on the fight against hate. It is a reminder that businesses can use their profits to make a positive difference in the world.
How Sales Get Using different channels
The $437 million Adidas Yeezy sale was the result of a number of factors, including:
- The popularity of the Yeezy brand. The Yeezy line of sneakers was one of the most popular and successful sneaker lines in the world, and there was still a demand for the shoes even after the partnership between Adidas and Kanye West ended.
- The limited availability of the shoes. Adidas had a limited supply of Yeezy sneakers, which helped to drive up demand and prices.
- The high resale value of the shoes. Yeezy sneakers were often resold for much more than their original retail price, which created an opportunity for buyers to make a profit.
The sale of the Yeezy sneakers was conducted through a number of different channels, including:
- Online retailers. A number of online retailers, such as StockX and GOAT, sold Yeezy sneakers.
- Auction houses. A number of auction houses, such as Sotheby’s and Christie’s, also sold Yeezy sneakers.
- Private sales. A number of private sales were also conducted, which allowed buyers to purchase Yeezy sneakers directly from sellers.
Numbers impact on Adidas’s after Yeezy’s sale
The sale of $437 million of Yeezy sneakers had a significant impact on Adidas’s numbers. The company reported a 150 million euro ($176 million) operating profit in the second quarter of 2023, which was better than it had originally planned. The sale of the Yeezy sneakers contributed to this increase in profits.
The sale also helped Adidas to reduce its inventory of unsold Yeezy sneakers. The company had been struggling to sell these shoes after it ended its partnership with Kanye West in 2022. The sale of the sneakers helped Adidas to clear out its inventory and free up cash flow.
Adidas yeezy complete the $437 million journey
- The partnership begins: In 2013, Adidas and Kanye West announced a partnership to create a line of sneakers called Yeezy. The first Yeezy sneakers were released in 2015 and were an immediate success.
- The partnership thrives: The Yeezy line quickly became one of the most popular and successful sneaker lines in the world. In 2019, Adidas reported that the Yeezy line had generated over $1 billion in revenue.
- The partnership ends: In 2022, Kanye West announced that he was ending his partnership with Adidas. The decision came after West had made a number of controversial statements that had damaged his relationship with the company.
- The sale of inventory: After the partnership ended, Adidas was left with a large inventory of unsold Yeezy sneakers. The company decided to sell the inventory to a number of different buyers, including retailers, wholesalers, and liquidators.
- The sale generates $437 million: The sale of the Yeezy inventory generated over $437 million for Adidas. The company used the proceeds from the sale to reduce its debt and invest in new businesses.
The $437 million journey of Adidas Yeezy is a story of success, controversy, and ultimately, redemption. The partnership between Adidas and Kanye West was a huge success, but it ultimately ended in acrimony. However, the sale of the Yeezy inventory helped Adidas to recoup some of its losses and move on from the partnership.