Adidas has made a huge profit from selling off its remaining stock of Yeezy shoes, the popular sneaker line created by rapper and fashion designer Kanye West.
The German sportswear giant announced that it sold a batch of 1.5 million pairs of Yeezys for $565 million to an undisclosed buyer, making it one of the biggest sneaker deals in history.
Why did Adidas end its partnership with Kanye West?
Adidas and Kanye West had a successful collaboration that started in 2015 after West left Nike.
The Yeezy line, which included sneakers, apparel, and accessories, was one of the most sought-after and influential in the fashion industry.
The Yeezy Boost 350, for example, was named the shoe of the year by Footwear News in 2015.
However, the relationship between Adidas and West soured over the years, as West became more controversial and unpredictable.
He made headlines for his erratic behavior, his political views, his divorce from Kim Kardashian, and his failed presidential bid.
He also clashed with Adidas over creative control, production issues, and royalties.
In November 2022, Adidas announced that it was ending its partnership with West and would stop producing and distributing Yeezy products by the end of the year.
The company said that it was a mutual decision and that it respected West’s vision and creativity.
It also thanked him for his contribution to the brand and wished him well for the future.
How did Adidas sell its remaining Yeezy shoes?
After terminating its contract with West, Adidas was left with a large inventory of unsold Yeezy shoes that it had to get rid of.
The company decided to sell them in bulk to a third-party buyer, who would then resell them to consumers or collectors.
Adidas contacted several potential buyers, including online retailers, sneaker resellers, and private investors.
It offered them a deal that included 1.5 million pairs of Yeezys in various models, colors, and sizes.
The asking price was $565 million, which works out to $377 per pair.
The deal attracted a lot of interest and competition among the buyers, who saw it as a rare opportunity to acquire a large quantity of highly coveted sneakers at a discounted price.
The Yeezys typically retail for $200 to $300 per pair, but can fetch much higher prices on the secondary market.
Some rare or limited-edition Yeezys can sell for thousands or even tens of thousands of dollars.
After a bidding process, Adidas finalized the deal with an anonymous buyer in January 2023.
The buyer paid $565 million in cash and received the shipment of Yeezys shortly after.
The identity and intentions of the buyer remain unknown, but some speculate that it could be a major online retailer like Amazon or eBay, or a wealthy sneaker collector or investor.
What is the impact of the deal on Adidas and Kanye West?
The deal is a win-win situation for both Adidas and Kanye West.
For Adidas, it means that it can clear its inventory of Yeezys and make a huge profit from them.
It also means that it can focus on its other products and partnerships, such as those with Beyoncé, Pharrell Williams, and Ivy Park.
For Kanye West, it means that he can sever his ties with Adidas and pursue his own independent ventures.
He has already launched his own brand called YZY GAP, which is a collaboration with Gap Inc.
Kanye has also signed a new deal with Nike, his former partner, and rival of Adidas.
He is expected to release new sneakers and clothing under the Nike umbrella soon.
The deal also benefits the sneaker industry and culture, as it creates more buzz and demand for Yeezys.
The buyer of the batch of Yeezys will likely resell them at higher prices to consumers or collectors who are eager to own a piece of sneaker history.
The Yeezys will continue to be one of the most coveted and influential sneakers in the world.
