Sneakers have always been a big part of fashion and culture, and one of the most shocking moments in sneaker history was when Kanye West, the famous musician and designer, ended his partnership with Adidas. This decision led to huge losses for Adidas and caused a lot of problems. Even though it’s now 2023 and Yeezy sneakers might not be as popular as before, there are still fans who love them and want to buy them. Surprisingly, Adidas has also managed to make a lot of money again.
Trouble in 2022
Everything started to go wrong in 2022. Kanye West posted some messages on a social media site that upset a lot of people. These messages were hurtful to the Jewish community and made people feel unsafe. Many people and organizations criticized Kanye for what he said. Even Adidas, the company that was working with him, had a problem with his actions.
Because of the things he said, a big fashion brand called Balenciaga stopped working with Kanye. His talent agency, CAA, also ended their partnership with him. G.O.O.D. Music, a music group he was connected to, decided not to work with him anymore. And then came the big shock: Adidas, the company that had been making Yeezy sneakers with Kanye, had to break their deal with him too. Many stores that sold Yeezy trainers stopped doing so because of what Kanye had said. Eventually, Adidas had to stop working with Kanye completely.
Breaking Up with Kanye
On October 25, 2022, Adidas made a statement saying they were ending their partnership with Kanye. They put this statement on their website. They explained that they couldn’t accept the hurtful things he said. They believed in respect and kindness, and Kanye’s words didn’t match their values.
When Adidas decided to stop making Yeezy sneakers with Kanye, it caused a big problem. Many people who were making these sneakers shoes lost their jobs. Projects that were in progress had to stop suddenly. This caused a lot of trouble for Adidas, and they had to deal with a big loss of money.
Adidas Facing Big Challenges
Reports said that Adidas might lose a lot of money, about $1.29 billion USD, because they had too many Yeezy sneakers that weren’t selling. This is because when they were still working with Kanye, they were making a lot of these sneakers shoes. They kept making new ones and restocking the old ones. But when they broke up with Kanye, they had a lot of sneakers left over that no one wanted to buy.
In 2021, Yeezy trainers made up 5% of all the things Adidas sold. This number was going up to 7% in 2022, but that didn’t happen because of the problems with Kanye. Adidas also said that if they couldn’t find a way to use or sell the extra sneakers shoes they had, it would cost them even more money, about $530 million USD, and this would affect their profits in 2023.
Adidas Looking for a Solution
The CEO of Adidas, Bjørn Gulden, said they weren’t happy with how things were going. He said that in 2023, they would work hard to make things better. They wanted to focus on making their customers happy and creating new and cool products. Bjørn Gulden was confident that they could fix the problems, but it would take time.
Adidas had to decide, Harm Ohlmeyer, said that they still owned all the designs and ideas related to Yeezy sneakers, except for the name “Yeezy.” So, they could keep making these best sneakers without Kanye. He also said they would save a lot of money in 2023 because they didn’t have to pay Kanye anymore.
A Fresh Start in 2023
Adidas decided they would keep selling Yeezy trainers. Kanye would still get some money from each sale, but Adidas would also give some of the money to groups that fight against hate and discrimination. This was a way for Adidas to make a positive change after all the trouble.
There were a lot of Yeezy trainers in storage, and Adidas wanted to find a way to sell them without losing too much money. They didn’t want to just throw them away. So, they started selling them again. In the first release, they sold a lot of sneakers shoes and made over $170 million USD. Kanye also made a lot of money from these sales, even though he was no longer working with Adidas.
Adidas decided to donate some of the money they made to groups that fight against hate and racism. They wanted to do the right thing and make a positive impact. This decision also helped Adidas make more money, which was good for their business.
First line up of Yeezy’s
The first batch of Yeezy releases holds significant anticipation, featuring beloved color schemes and models. The standout stars of this collection are the Yeezy 350 Zebra and Pirate Black. These two color options hold a special place not only as fan favorites but also as iconic choices. For those who prefer chunkier yet exceptionally comfortable casual sneakers shoes, the Yeezy 500 and 700 are must-haves. The easily wearable Yeezy Foamrunner and slides have also returned, boasting clean and appealing color variations.
The products were swiftly made available on the Adidas CONFIRMED app and the Adidas Website, and they quickly sold out.
The initial release has garnered remarkable success. According to reports, a whopping 682,300 pairs of YEEZYs were launched, resulting in a total sales value of $170.5 million USD. Despite the fallout between Adidas and Ye, the rapper and designer, he still retains a substantial 15% royalty from the sales of YEEZY products. This translates to an impressive outcome from the first release, with Ye having earned more than a quarter of $100 million USD — to be exact, a staggering $25,586,250 USD. With two more releases still to come, it’s anticipated that Ye will continue to reap significant profits. This clearly demonstrates that YEEZY sneakers remain a major draw for consumers, irrespective of any controversies surrounding the creator.
Meanwhile, Adidas appears committed to its promise of contributing a portion of the earnings to organizations dedicated to combating antisemitism and racism. One of their plans involves distributing funds among five charities in the United States and China, totaling over $9 million USD. However, reports suggest that the brand is considering donating an even more substantial amount. An official statement from Adidas emphasizes the positive impact of YEEZY sales on both the company’s top and bottom lines. As the brand continues its efforts to counter the earlier-projected losses, a comprehensive array of new YEEZY models is expected to hit shelves in August, signaling a promising step forward.
Yeezy’s Future
Despite Yeezy sneakers not enjoying the same level of popularity as in the past, they continue to maintain a strong fan base. There remains a significant interest among people to purchase them, and Adidas is actively seeking strategies to ensure their ongoing success. The company has taken lessons from their previous experiences and is dedicated to improving their approach. Nevertheless, the outlook for the collaboration’s future remains uncertain, and recent reports suggest that this year could mark the conclusion of the Yeezy-Adidas partnership.
