At cost price
Adidas is launching “Yeezy” shoes again
February 26, 2024, 11:31 a.m
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When rapper Kanye West made headlines with anti-Semitic statements, the sporting goods manufacturer Adidas first decided to destroy “Yeezy” products that had already been manufactured. Boss Gulden finally decides to sell the remaining stock. Now it’s that time again.
Adidas has launched the third sales campaign for “Yeezy” shoes. The sneakers designed by rapper Kanye West (“Ye”) will gradually be offered exclusively on Adidas’ online channels over the next few weeks, as the world’s second largest sporting goods manufacturer in Herzogenaurach announced.
Analysts recently expected three “drops” for 2024, compared to two last year. According to CEO Björn Gulden, Adidas canceled a third drop in the fall due to tensions in the Middle East and high levels of uncertainty.
The company initially planned to destroy the “Yeezy” products it had already manufactured. Adidas separated from the US rapper in 2022 after he made headlines with, among other things, anti-Semitic statements. Gulden finally decided to sell the remaining stocks. Two online sales campaigns alone brought Adidas 700 million euros in sales and 300 million euros in operating profit in 2023.
The rapper had brought expensive lifestyle products onto the market together with Adidas – a highly lucrative business for both sides. “When I was still at the competitor, I sat there with wide eyes,” said Gulden at the annual press conference last year. “Yeezy” meant billions in sales for Adidas, especially in the USA, with a very high profit margin. However, after West’s anti-Semitic comments, Adidas stopped the collaboration.
There are now goods left worth around 250 million euros. Adidas wants to sell them at least at cost price. The sporting goods manufacturer has not planned to make a profit from this, but analysts consider this planning to be too cautious. Adidas donated part of the proceeds from the “Yeezy” sale to organizations that fight against racism and anti-Semitism.