Adidas AG is set to release a second wave of Yeezy sneaker sales as part of its strategy to clear out the inventory of products from its canceled collaboration with rapper and designer Kanye West. The German sportswear company will be offering a variety of Yeezy footwear in multiple phases throughout the month of August, extending its distribution to include digital platforms of selected wholesale partners.
This move comes after Adidas experienced a financial boost from its initial sale of Yeezy merchandise earlier this spring, which has positively impacted its outlook for the year. By continuing to push Yeezy sales, Adidas hopes to further reduce its projected operating loss for 2023, which is currently estimated at €450 million ($499 million). This adjustment is an improvement from the initial forecast of €700 million outlined by Adidas in February. In addition to financial gains, Adidas plans to donate a significant portion of the proceeds from Yeezy sales to organizations dedicated to combating discrimination and hate. The company has now added Robert Kraft's Foundation to Combat Antisemitism to the list of supported groups. Furthermore, Adidas intends to include blue square pins, symbolizing the fight against antisemitism and hate, with some of the Yeezy products sold in North America.
In October, Adidas terminated its collaboration agreement with Kanye West, now known as Ye, following a series of antisemitic remarks made by the artist. As a result, around €1.2 billion worth of Yeezy sneakers were left in limbo.
Earlier this year, the shoe manufacturer sold the first batch of Yeezy products exclusively through its website and mobile app. Now, with the upcoming release of a new collection, Adidas aims to reach a wider audience by incorporating digital platforms of its wholesale partners.
Adidas remains committed to managing its inventory and taking advantage of the Yeezy brand's popularity while contributing to social causes and combating hate and discrimination. By strategically releasing additional Yeezy sneakers, the company aims to not only offset its financial losses but also promote positive social change.