The renowned sportswear brand takes steps to address profit losses and prioritize sustainability efforts.
Adidas and Kanye West are back. After the German sportswear company terminated its partnership with the artist in October 2022 for making anti-Semitic remarks and harassing employees in the workplace and online, it decided to continue selling Adidas YEEZY products. Under Ye's contract, he will still receive a 15% commission for every sale. However, the brand will donate a portion of the proceeds to international organizations that support the groups he offended.
Over 1.3 billion USD worth of Adidas YEEZY sneakers are currently sitting in storage. This decision was made to minimize the company's profit loss and avoid a sustainability ordeal. At the time of writing, it is still unclear how much stock will be released, what models and colorways will be launched, and how they will be sold (via the CONFIRMED app, online stores, or wholesale retailers). It is also unclear how much of the proceeds will be donated. "What we are trying to do now over time is to sell some of this merchandise...burning the goods would not be a solution", said Bjørn Gulden, CEO of Adidas. The sportswear company considered donating all of the sneakers but felt that it would lead to them reaching the market in a volatile way.
More information about upcoming Adidas YEEZY launches is expected to be announced in the coming months.
