Adidas confirmed on Wednesday that it has sold its final pair of Yeezy sneakers, concluding the liquidation process of its remaining inventory from the partnership with Ye, formerly known as Kanye West. The sportswear giant severed ties with the rapper in October 2022 following his antisemitic remarks.
The termination of the highly profitable Yeezy partnership significantly impacted Adidas’ financial performance, leading to a substantial revenue decline and an annual loss in 2023. The company has been actively working to move past the controversy. “There is not one Yeezy shoe left, it has all been sold and that episode is behind us,” stated Chief Financial Officer Harm Ohlmeyer during a press conference following the release of Adidas’ financial results.
The absence of Yeezy sales has been particularly noticeable in the United States, a key market for the popular shoe line. Adidas reported a 2% decrease in North American sales for 2024, attributing the decline entirely to the significant reduction in Yeezy sales.
The liquidation of the remaining Yeezy stock commenced in May 2023. Adidas committed to donating a portion of the proceeds to organizations dedicated to combating antisemitism, including the Anti-Defamation League.
According to Adidas, the sale of Yeezy sneakers generated 650 million euros ($696 million) in revenue in 2024, resulting in approximately 200 million euros in profit. In comparison, Yeezy inventory contributed 750 million euros in revenue and 300 million euros in operating profit in the preceding year.
CEO Bjorn Gulden announced that Adidas has allocated 260 million euros for charitable donations from the Yeezy sales proceeds, representing roughly half of the operating profit generated from the liquidation in 2023 and 2024.
Of the designated donation amount, 200 million euros are currently held within a foundation established by Adidas, while 60 million euros have already been disbursed to various charitable organizations.
In conclusion, the complete liquidation of Yeezy inventory marks a definitive end to the Adidas and Ye chapter. While the financial impact was substantial, Adidas has committed to using a significant portion of the profits for charitable causes. The company now focuses on its future, navigating forward without the Yeezy line.
