Adidas AG is initiating another sales round of Yeezy products. This action aims to bolster earnings by addressing the backlog of footwear resulting from its terminated partnership with entertainer Ye.
In a statement on Monday, Adidas announced plans to release a variety of products from 2022 in multiple phases over the upcoming weeks, accessible globally. Among the offerings will be some of the highly sought-after Yeezy designs, such as the 350 V2 sneaker in steel gray.
In contrast to its previous successful sale of Yeezy models in late summer last year, Adidas will exclusively offer the products through its digital platforms this time, eliminating certain retail partners.
Adidas terminated its partnership with Ye, the rapper and designer formerly known as Kanye West, in October 2022 following a string of antisemitic and erratic comments. The company faced widespread criticism for what many saw as a delayed response in ending the collaboration.
Adidas reported in November that it had achieved approximately €750 million ($800 million) in sales from two Yeezy product releases since May of the previous year. This progress allowed the company to reduce its Yeezy inventory by about 40%, which had been stored at multiple locations globally.
Earlier in the month, Adidas announced its intention to sell the remaining €250 million worth of Yeezy products at least at cost, rather than opting to write them off. This strategic move is aimed at potentially surpassing the company's initial earnings forecast for the year, which had fallen short of investors' expectations.
"There's still demand for that Yeezy silhouette in the marketplace. That brand was generating an enormous percentage of their overall operating profit for several years."
- John Kernan, Cowen analyst
Since assuming the role of Adidas' chief executive officer last year, Bjorn Gulden has consistently commended the company for its success in developing the Yeezy franchise. He likened this achievement to the unprecedented success Nike Inc. experienced when it introduced its line of products with basketball legend Michael Jordan.
During Bjorn Gulden's tenure as CEO of crosstown rival Puma SE, he was not involved in Adidas' Yeezy collaboration or its aftermath. However, he has frequently commented on the collaboration since becoming CEO of Adidas, sparking speculation about his intentions.
In September, the CEO apologized for remarks he made during a podcast, where he questioned the sincerity of Ye's antisemitic statements.
And Gulden was recently photographed alongside the entertainer during the NFL Super Bowl in Las Vegas.