Kanye West and Adidas Reach Agreement to Sell $500 Million Worth of Remaining Yeezy Sneakers – Report
Adidas terminated its partnership with Kanye West in October of 2022. Now, according to reports, the shoe giant and Ye have come to an agreement to sell all remaining $500 million worth of Yeezy sneakers in 2023. The remodeled contract will reportedly focus solely on the sale of existing inventory of the rapper's popular shoe line and will not include his clothing line or new designs.
The news come on the heels of Adidas announcing they expect to take a $1.3 billion hit as a result of dropping the controversial entertainer earlier this month. The adjusted amount was way more than first projected, with Adidas initially saying the split would cost them more than $250 million in profit and $500 million in lost revenue, according to the company.
"The numbers speak for themselves. We are currently not performing the way we should," said adidas CEO Bjørn Gulden about the blow to Adidas' profit margins. "2023 will be a year of transition to set the base to again be a growing and profitable company. We will put full focus on the consumer, our athletes, our retail partners and our adidas employees. Together we will work on creating brand heat, improve our product engine, better serve our distribution and assure that adidas is a great and fun place to work. adidas has all the ingredients to be successful: A great brand, great people, fantastic partners and a global infrastructure second to none. We need to put the pieces back together again, but I am convinced that over time we will make adidas shine again. But we need some time."
Kanye West and Adidas had a 10-year partnership that ended last year after the company parted ways with the Donda rapper over anti-Semitic comments. Ye has since attempted to find a new home for his line but has been unsuccessful.
XXL has reached out to Adidas for comment.