According to a Financial Times story, Adidas has received orders totalling more than 508 million euros, or approximately $565 million, for the first round of online sales of its unsold inventory of Yeezy shoes.
According to the article, which cited persons with knowledge of the situation, Adidas received orders for 4 million pairs of shoes between May and June, which was more than it anticipated, but it was unable to match the demand.
After Ye, the artist formerly known as Kanye West, made anti-Semitic remarks on social media and in interviews, Adidas severed its relationship with him in late October. As a result, it remained unclear what happened to the 1.2 billion euros (USD 1.3 billion) in unsold Yeezys, a successful sneaker line introduced with Ye.
According to the story dated July 21, the corporation is suing Ye for $75 million, claiming that Ye mishandled the money. Adidas claimed to have put $75 million into two Yeezy bank accounts, however sources claim that Kanye West (Ye) and his affiliated businesses “mishandled almost all of the marketing funds.” According to reports, they failed to keep the cash properly segregated and utilised them inadvertently.
The company decided to sell a portion of its remaining inventory and donate the earnings to charitable organisations, according to Bjørn Gulden, CEO of the German sports brand, who made the statement in May 2023.
Adidas reported losing sales of 400 million euros (or $441 million) at the beginning of 2023. According to the corporation, net sales in the first quarter fell 1% to 5.27 billion euros and would have increased 9% with the Yeezy line. It revealed a net loss of 24 million euros, down significantly from the 310 million euros in profit it made during the same period last year.
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