At the end of 2022, adidas announced that it was cutting ties with Kanye West, after the American rapper made a series of anti semitic and racist remarks through his social media channels. The move was totally unexpected, and it also meant that the German sportswear company had millions and millions of euros worth of Yeezy inventory just sitting in its storerooms, collecting dust.
In 2023, the Three Stripes announced that it would be dropping what was left of its stock in hopes that it could prevent an issue surrounding sustainability. While a part of the profits were donated to charities and organisations that were affected by Ye and his comments, this to caused some major backlash. So at the end of last year, adidas halted sales altogether.
Now, the Herzogenaurach-based corporation has revealed that this year, they’ll continue to sell Yeezys once again, but this time it’s aiming to clear all of its inventory. And while this decision could, indeed, change once again, here’s what we know so far.
This planned sale of the Yeezy product line is expected to have no immediate impact on the company’s operating profit for the current year. Instead, adidas is banking on the strong demand for Yeezy sneakers and a better-than-expected Q4 in 2023 to boost its operating profit significantly. The company is optimistic about generating a profit of around €500 million in the year ahead.
These numbers are particularly impressive given the decision not to write off the majority of existing Yeezy inventory. According to adidas’s preliminary results for 2023, this strategic move paid off handsomely. The company now plans to sell the remaining Yeezy products in 2024, at least covering the cost price.
This decision is backed by the company’s research, indicating that there’s still a substantial market for the remaining Yeezy inventory. While adidas is bidding farewell to its collaboration with West, it’s clear that the Yeezy brand continues to be a force to be reckoned with in the world of sneakers, and 2024 is shaping up to be a year of impressive sales for this iconic footwear line. For your best chance to secure any of the upcoming colourways, keep it locked at Captain Creps.
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