Why it matters: Adidas is trying to solve its public relations problem.
post on the adidas website The Yeezy Boost 350 V2 sneakers, which come in two-tone black, red, and gray colors and retail for €200, or approximately $213 each, were a hit on social media, reflecting the brand’s enduring popularity. The shoes will go on sale on Thursday.
Adidas said the decision to sever ties with Ye has cost the company 1.2 billion euros in sales and about 500 million euros in lost profits this year.
Options for destocking ranged from burning to donating to the poor. Gulden said figuring out what to do with the remaining inventory was “one of the toughest decisions I’ve been involved in.”
However, Yeezy shoes sell for up to $1,000 per pair and are known to remain popular despite their association with Ye. The company said it made the decision in consultation with groups such as Black Lives Matter and the Philonise & Keta Floyd Institute for Social Change, which is run by George Floyd’s brother Philonise Floyd.
Jonathan A. Greenblatt, chief executive of the Anti-Defamation League, one of the groups benefiting from the sale proceeds, hailed Adidas’ decision as befitting the complexity of the issue.
“This is a thoughtful and compassionate solution to unsold merchandise,” Greenblatt said.
But other groups have pointed out that Yeh will still profit from sales, despite Adidas’ promise to donate the proceeds. Adidas declined to comment on the amount, but Gulden previously said Yi still has a royalty agreement that Adidas is obligated to honor.
Josef Schuster, president of the German Jewish Central Council, said, “Adidas’ willingness to donate the proceeds is highly commendable.” The fact of getting it is very problematic,” he added.
Background: The end of a lucrative partnership.
The Yeezy brand has become a defining force in the sportswear industry and an incredibly lucrative base for adidas. The rapper’s partnership with the German-based company was hailed as the most successful sportswear collaboration since Michael Jordan partnered with Nike.
But last fall, Ye’s erratic behavior and remarks targeting blacks and Jews caused a stir. After other brands cut ties with the artist, Adidas came under pressure for not responding.
What’s next: More Yeezy styles may be for sale.
In addition to the two styles listed for sale, the website has images of 12 other models, suggesting that more models may be announced in the coming weeks. I’m here.
Adidas said it was considering releasing more Yeezy stock, but didn’t provide a timeline. Customers were asked to download the app and register for updates.
