Adidas and Kanye West’s partnership has come to an end, but the unsold Yeezys remain a headache for the German brand. According to NPR, Adidas still has $1.2 billion worth of unsold Yeezys and they’re not exactly sure what to do with them in their inventory. “We are working on different options,” CEO Bjorn Gulden said during an investor’s call last week. “The decisions are getting closer and closer.”
Despite the unsold inventory and Adidas choosing to cut ties with West after his anti-Semitic remarks last year, fans are still purchasing Yeezys on resale sites for exceptionally high prices. According to CBC News, the resale market for Yeezys is booming. Most Adidas Yeezys were sold for an original retail price of $200 to $350, but resellers are now charging upwards of $1,000 per pair.
In February, Adidas had already said they predicted to lose over a billion dollars by not selling the existing merchandise while additional profits were likely to be cut by another $500 million. Sources say the loss could be much bigger if Adidas doesn’t find a way to repurpose the already-made Yeezy products. The split between Adidas and Kanye West’s business relationship may impact both parties financially, but it remains to be seen how it will affect the long-term popularity of Yeezys. Regardless, it’s clear that the collaboration between Adidas and Kanye West has left a lasting impact on the sneaker industry.
While Adidas may be struggling with unsold inventory, the hype around Yeezys remains high in the resale market.
Since his scandals in late 2022, Kanye has lost endorsement deals and partnership agreements with brands like Balenciaga and JP Morgan. Adidas, who collaborated with Kanye on his Yeezy line of shoes worth $1.3 billion according to Forbes, was one of the first to severe ties with him. In response to his comments, a man even burned his Yeezy shoes in protest. Furthermore, Kanye’s documentary about himself has been shelved, and his talent agency has dropped him.
Despite all this, Kanye has defended himself by saying that he is not anti-Semitic and that others are targeting him unfairly. However, his comments have not only sparked controversy but also have serious implications for his career. Spotify CEO recently called out Kanye West’s “awful” anti-Semitic remarks but refused to remove his music from the platform. The music industry is scrambling to contain the fallout from Kanye’s controversy as Spotify, Universal, and Sony have denounced his previous comments about the Jewish community.
It is essential to note that endorsements and deals with major brands can significantly impact an artist’s career and income. Therefore, it is critical for artists to be mindful of their words and actions as they have far-reaching consequences. West’s anti-Semitic comments have resulted in him losing endorsement deals and partnership agreements with significant brands, and despite defending himself against accusations of being against Jewish people, his career has suffered a severe blow.
While the scandal may have boosted his brand’s resale market, people are still keen to see how Ye bounces back from all of this.