Adidas received orders worth about $565 million for 4 million pairs of unsold Yeezy shoes, after severing ties with Kanye West, the Financial Times reports.
Strong demand for the first batch of online sales would potentially save the German sporting giant from having to take a big write down on its remaining stock.
Adidas cut ties with the controversial rapper who goes by Ye, following a string of antisemitic statements in October, before announcing it would sell some of its outstanding Yeezy inventory because destroying it would force the company to write off another €500mn.
The business confirmed it would be donating a significant portion of the proceeds to charities that combat racism and antisemitism.
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According to sources, demand at the first online sale of Yeezy shoes, which was spread over the end of May and the start of June, exceeded the company’s most optimistic forecast.
As the sale neared its end on 2 June, Adidas had received orders worth more than €508mn for 4m pairs of sneakers, the people told the FT.
The strength of demand meant Adidas was unable to meet all the orders, particularly for certain sizes and models, they added.
Customers had to register online in advance and submit their orders for specific models and although the value of the orders received was more than €508mn, the net sales were lower.
The visibly strong demand has dispelled fears at Adidas’s headquarters in Herzogenaurach that Ye’s antisemitic outbursts and the lack of marketing for the shoes over the past six months would have made the Yeezy brand too toxic.
After first collaborating back in 2015, Ye developed into an important partner for Adidas and by 2022 Yeezy generated €1.7bn in sales and close to €700mn in operating profit.
Earlier this year Adidas’ profits dropped for the financial year 2022 after terminating its Yeezy partnership.
The sportswear giant recorded a gross profit of £9.45bn for the 12 months to December 31, 2022, 1% less than the £9.54bn it made in 2021.
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