German sportswear giant Adidas has recently launched the second sale of Kanye West’s Yeezy sneakers, igniting excitement among eager fans and sneaker enthusiasts who eagerly anticipate owning a pair of these iconic footwear pieces.
The decision to commence the second sale of the rapper’s Yeezy Sneakers follows Adidas’ impressive financial performance from the initial release. This indicates that West’s line still holds immense commercial appeal despite the controversy surrounding the artist.
Between April and June this year, Adidas reported a staggering €400 million ($440.7 million) in sales from the first release of West’s Yeezy sneakers after the collaboration with the artist was terminated in October 2022.
In May, Adidas announced its decision to sell off the inventory of Yeezy sneakers created in partnership with West rather than dispose of them.
The first batch of Yeezy sneakers hit the market in June and experienced overwhelming demand, quickly selling out. This led to an operating profit of €176 million ($193.8 million) in the second quarter, which exceeded initial projections.
Approximately 20 to 25 percent of the Yeezy sneakers were cleared from warehouses during the first sale, contributing a significant €150 million ($165.2 million) to Adidas’ operating earnings in the April-to-June period.
In light of the success of the initial sale and a slightly better-than-expected development of Adidas’ overall business in the first half of the year, the company adjusted its full-year financial guidance on July 24. This reflects the positive impact of the first sale of some Yeezy inventory.
Despite the outstanding performance of the first release, Adidas remains cautious about the upcoming sales.
It acknowledges that the first sale primarily included the highest-priced shoes, which contributed significantly to the sell-out. As a result, it remains uncertain whether subsequent releases will witness similar price levels and demand.
While West, now officially known as Ye, has suffered a significant $1.6-billion decline in net worth since the termination of his partnership with Adidas, the sportswear behemoth has also taken a hit.
In the first quarter of its 2023 fiscal year, Adidas reported a net loss of €39 million ($43 million) compared to a profit of €482 million ($531.2 million) in the same period last year.
