Cuts Ties With Adidas Kanye West It turns out to be a huge gamble because it’s about to sell more than half a billion dollars worth of the guy’s shoes, without his name on them.
We already knew that Adidas was planning to boost sales of Yeezys post-split, but now…we have a little more insight into why. As stated therein Financial TimesInsiders at the sneaker company say Adidas is sitting on a giant Yeezys mountain.
Fear, misfortune and Kanye West: How adidas lost its luster https://t.co/EtU17VCnQE
— Financial Times (@FT) December 23, 2022
According to the report, the company’s inventory is about $530 million … and Adidas is apparently Eager to hawk them Barring an even bigger hit than has been publicly revealed so far — it already looks pretty bad for year-end numbers.
On top of the staggering amount of shoes it has to move — and Adidas is scrambling to figure out how to do it — the FT story goes into some detail about how deeply tied to Yeezys it is and how far Adidas was left behind. Its success.
In 2022 alone, Yeezys earned Adidas over $1.8 billion … and made up 7% of its total profits. The report also claims that the Yeezy is firmly in the Adidas wheelhouse as a stable product through at least 2019, which may explain why Adidas took so long. She ended her relationship with Kanye — dude (and his shoe brand) is really its cash cow.
Adidas has reportedly already set a date for its first unofficial Yeezy release … the company is calling it the adidas 350 V2 “Granite,” and it’ll retail for $230 — dropping in January.
adidas 350 V2 “Granite” ⚫️
Released on January 2023 🗓️
Retail is $230 💸
Who Can Cope Without Easy Branding? 🤔 pic.twitter.com/M4cMQl76f5
— 👁️ Sneaker Visions 👁️ (@SneakerVisionz) December 19, 2022
There’s been a lot of debate online about whether people should (or will) buy what Adidas is trying to sell right now … but this report makes it clear — it’s banking. Sneakerheads continue to policeBecause if they don’t … that spells trouble for the shoe company.
Kanye, meanwhile, hasn’t said much about Adidas/Yeezy in particular as of late — other than complaining in general. He shows no signs of trying to reclaim it as his own IP.