Adidas has announced that it will sell its stock of unsold Yeezy shoes and donate the proceeds to charity. The move comes months after the company cut ties with Kanye West over his antisemitic remarks.
Adidas CEO Bjorn Gulden said the company spent months considering its options for the unsold shoes, including destroying them. Now, the company is ready to move forward by selling off the remaining inventory.
“What we are trying to do now over time is to sell parts of this inventory and donate money to the organizations that are helping us and that were also hurt by Kanye’s statements,” Gulden said.
Both Adidas and the Yeezy brand have taken a hit since the partnership ended. Adidas estimated that the decision to not sell the existing Yeezy merchandise would cut the company’s full-year revenue by about $1.3 billion and its operating profit by $533 million. In the first quarter alone, the discontinuation of the Yeezy business cost Adidas nearly $440 million in sales.
Gulden did not say which organizations would receive the donations, but he did say that the company is still working out the details of the sale. But the decision to sell the remaining Yeezy collection is ultimately a win-win for Adidas. The company will be able to recoup some of the money it lost when it cut ties with West and it will also be able to do some good by donating the proceeds to charity.
And, it could help Adidas’ overall image, which has taken a major hit for its continued association with West. Earlier this month, a group of investors filed a class-action lawsuit against Adidas, claiming the company knew about West’s problematic behavior for years before they decided to cut ties with him last year. and ending the collaboration. Adidas has denied the allegations.
Adidas is not the only company that has been hurt by West’s recent behavior. Over a dozen brands, such as Balenciaga and Gap, have also distanced themselves from the rapper.
