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Monday, May 27, 2024

Adidas has an order of shoes from a collaboration with Ye worth $565 million

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Adidas received orders worth $565 million for 4 million pairs of unsold Yeezy shoes. This result is better than the company’s “most optimistic forecast”.

The Financial Times reported on the sales figures on Monday. The newspaper reported that strong demand could potentially protect the German company from having to write down a large amount of its remaining inventory.

Adidas halted sales of Yeezy shoes in October last year after it ended its partnership with Kanye West after he made a series of anti-Semitic comments. This affected the company’s finances. The loss of a highly profitable line caused the company’s first-quarter sales to fall by approximately $440 million.

Read also: Adidas with first loss in 31 years. Mainly by collaborating with West

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The Yeezy brand, however, is not “too toxic”

The high demand for the unsold shoes has dampened fears that West’s anti-Semitic behavior and suspension of marketing would make the Yeezy brand “too toxic”, the Financial Times reported, citing its sources.

Adidas declined to comment, saying it was in a “quiet period” ahead of its quarterly results release on August 3. The agency recalls that the German company announced in May that it would donate part of the proceeds from sales to organizations fighting anti-Semitism and racism.

Charities will get millions

The Financial Times reports that there are ongoing discussions about how much each charity will receive. So far, Adidas has selected five that work in USA and China. “Donations of more than €8.5 million to five charities have been discussed but no decision has been taken,” the newspaper reported, citing people familiar with the matter. The final amount donated from the sale will be much more as the company is willing to donate a significant portion of the proceeds from Yeezy inventory. Reuters recalls that Adidas predicted a loss this year before announcing its intention to sell its stock of these shoes.

Main photo source: Lulucmy/Shutterstock

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