Adidas starts unloading its Yeezy gear to help anti-hate groups
Why it matters: Adidas is trying to solve a PR problem.
The posts on the Adidas website of Yeezy Boost 350 V2 sneakers, in black and two-tone red and gray, sold for 200 euros a pair, or about $213, generated buzz on social media, reflecting the brand’s enduring popularity. The shoes go on sale on Thursday.
Adidas said its decision to cut ties with Ye has cost the company €1.2 billion in lost sales and about €500 million in profits this year.
Options for eliminating the inventory ranged from burning it to donating it to the needy. Mr Gulden called figuring out what to do with the remaining stock “one of the hardest decisions I’ve been a part of”.
But Yeezy shoes have been known to sell for up to $1,000 a pair and remain popular despite their association with Ye. So the company said it made the decision in consultation with groups like Black Lives Matter and the Philonise & Keeta Floyd Institute for Social Change, which is led by Philonise Floyd, George Floyd’s brother.
Jonathan A. Greenblatt, general manager of the Anti-Defamation League, one of the groups that will benefit from the proceeds from the sale, welcomed Adidas’ decision as one that fits the complexity of the issue.
“This is a thoughtful and caring solution for the unsold merchandise,” Mr Greenblatt said.
But other groups noted that despite Adidas’ commitment to donate the proceeds, Ye would still make money from the sale. Adidas declined to comment on how much that would be, but Mr Gulden previously said Ye still had a royalty contract that Adidas was obliged to fulfil.
“Adidas’ willingness to donate the proceeds is very commendable,” said Josef Schuster, president of the Central Council of Jews in Germany, but added: “The fact that Kanye West would benefit financially from the sale is highly problematic. “
Background: The end of a hugely lucrative partnership.
The Yeezy brand became a defining force in the sportswear industry and an incredibly lucrative cornerstone for Adidas. The collaboration between the rapper and the German-based company has been hailed as the most successful sportswear collaboration since Michael Jordan partnered with Nike.
But last fall, Ye’s erratic behavior and comments aimed at blacks, Jews and others caused a stir. Adidas came under pressure for not responding, after other brands cut ties with the artist.
What’s Next: More Yeezy styles may be available for sale.
In addition to the two styles for sale, the website shows images of a dozen other models, suggesting more could be announced in the coming weeks.
Adidas said it was considering further Yeezy inventory releases, but did not give a timeline. Customers were asked to download an app and register for updates.