Adidas has reportedly received orders worth over 508 million euros ($565 million) for four million pairs of unsold Yeezy shoes, surpassing the company’s most optimistic expectations. This unexpected demand for the first batch of Yeezy sneakers may save the German sportswear company from taking a substantial writedown on its remaining stock. Earlier, Adidas ceased selling Yeezy shoes due to controversial comments made by the rapper formerly known as Kanye West, leading to a significant hit to the company’s first-quarter sales, estimated at around $440 million.
Despite concerns about the potential impact of Kanye West’s past remarks and decreased marketing efforts, the robust demand for the unsold sneakers has proven that the Yeezy brand remains highly desirable. This positive response has eased worries at Adidas’ headquarters, where it was feared that the brand might become too toxic to recover from the setback.
Adidas had pledged to donate a portion of the proceeds from the sales to organizations fighting antisemitism and racism. While discussions about the exact amount of donation are ongoing, the company has already selected five charities in the United States and China for its initial contribution. The report indicates that Adidas is open to donating a significant share of the profits from the Yeezy inventory, potentially resulting in a much larger final donation amount.
Previously, Adidas had anticipated a loss this year before announcing its plans to sell the remaining Yeezy stocks. The surprising surge in orders has presented a more optimistic outlook for the company’s financial performance moving forward.