Adidas Receives Over $500M Worth Of Orders For Leftover Yeezy Shoes

Adidas has received orders worth over 508 million euros, equivalent to around $565 million for unsold Yeezy shoes. The orders made for the four million pairs of shoes have surpassed the company’s estimates.

Adidas gets over $500M in orders for unsold Yeezy shoes

A report by the Financial Times said that the orders made for these shoes had surpassed the most optimistic forecast that had been made by the company. The solid demand for the first batch of online sales for the shoes is a major win for the company.

Given the massive orders that have been received for these shoes, the German sportswear brand will no longer have to take a major write-down on the remaining stock. The sale comes months after Adidas ended its partnership with Ye.

Ye, formerly known as Kanye West, was the image for the Yeezy brand. However, in October, Adidas ended its partnership with the rapper after he made several anti-Semitic comments. Yeezy was one of the most profitable lines at Adidas, with the end of the partnership dropping the sales made by the company in the first quarter of 2023 by around $440 million.

The Financial Times report noted that the massive demand seen for these sneakers had quelled fears that the association of Yeezy with Adidas was bad for the company. Sources close to the matter noted that there were concerns at Adidas that Ye’s remarks and a plunge in marketing would have resulted in the Yeezy brand being too toxic for the company.

Adidas to donate part of proceeds to charity

In May, the company released a statement saying that it planned to donate part of the proceeds made from the sale to the organizations that were fighting against racism and anti-semitism. The move was seen as an effort by the company to quench some of the criticism being directed at the brand.

The report noted that the company was holding discussions about the planned donations and the amount that would be donated to individual charities. The company has also selected five charities based in China and the US to be the first step for the company’s donations to address the prevalent issue of racism and anti-semitism.

According to Financial Times, the company was planning on making donations worth more than 8.5 million euros across the five charities that had been selected to benefit from the cause. However, the sportswear company was yet to reach a decision on the matter. #

The final amount that will be donated from the sales is expected to be significantly large, given the demand that has been seen so far. The company is willing to donate a significant share of the profits generated from the sale of these shoes.

Adidas had forecast making a loss during the current financial year before later revealing a plan to sell the Yeezy stocks. The revenue generated from the sale will go a long way in generating positive numbers for the company.