Cyprus Mail

Adidas gets $565 mln in orders for first batch of unsold Yeezy shoes

adidas yeezy

Adidas (ADSGn.DE) got orders worth 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 orders for the first batch would potentially save the German sportswear company from having to take a big writedown on its remaining stock, the newspaper said.

Adidas stopped selling Yeezy shoes from its defunct partnership with Ye in October after the rapper formerly known as Kanye West made a series of antisemitic comments on social media and in interviews.

Losing the highly profitable line hit first quarter sales at the German sportswear company by around $440 million.

However, robust demand for the unsold sneakers has quelled fears at Adidas’ headquarters that Ye’s antisemitic outbursts and a drop in marketing in the recent past would have made the Yeezy brand too toxic, FT said, citing sources.

Adidas did not immediately respond to a Reuters request for comment.

The company had said in May it would donate some of the proceeds from the sales to organisations fighting antisemitism and racism.

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

“Making donations of more than 8.5 million euros across the five charities has been discussed but no decision has been made,” FT said, citing people familiar with the matter.

The final amount donated from the sales will be much larger as the company is willing to pay a significant share of the profits from the Yeezy inventory, the report said.

Adidas had forecast a loss this year before announcing its intentions to sell leftover Yeezy stocks.

($1 = 0.8996 euros)

Follow the Cyprus Mail on Google News

Related Posts

Cyprus Business Now

Kyriacos Nicolaou

UK’s hot labour market shows sign of cooling

Reuters News Service

Robinhood launches commission-free crypto trading in EU

Reuters News Service

Palta: A technology company focused on health and well-being

CM Guest Columnist

Cyprus Stock Exchange advocates for sustainable development

Kyriacos Nicolaou

CBC governor touches on digital euro, crypto, local fintech initiatives

Kyriacos Nicolaou