Kanye West Yeezy Sneaker Sales Continue to Bring Adidas Huge Revenue
Adidas’ decision to resume selling Kanye West’s Yeezy shoes has proven to be a wise move, as the sportswear giant disclosed its preliminary earnings for the third quarter of 2023, showing significant gains. The most recent Yeezy releases contributed approximately $158.5 million in sales.
These Yeezy sneaker sales have substantially improved the financial outlook for the German sportswear brand, reducing its projected operating loss for 2023 from $474 million to approximately $106 million.
Adidas issued a statement, noting that while the company’s performance in the quarter was boosted by the sale of the remaining Yeezy inventory, the core Adidas business also performed better than anticipated.
Adidas shares have risen by 34 per cent since the beginning of the year, demonstrating the positive impact of the Yeezy collaboration’s revival on the company’s performance.
It has been nearly a year since Adidas initially terminated its Yeezy partnership with Kanye West due to his series of antisemitic comments. However, the company quickly changed course and began distributing Yeezys in May, a decision that has now paid off handsomely.
Kanye West continues to receive royalties from each Yeezy sale, while Adidas remains committed to donating a portion of the proceeds to various Jewish organizations and charities.
A more comprehensive view of Kanye’s influence and Adidas’ financial position will be available when the company releases its complete third-quarter earnings report next month.
Adidas CEO Bjørn Gulden recently praised Kanye West’s creativity but later walked back his comments and apologized for the rapper’s past antisemitic remarks. He acknowledged the success of the Yeezy line and the unfortunate termination of the collaboration.
Gulden stated, “I think Kanye West is one of the most creative people in the world. And both in music and what I call street culture. So he’s extremely creative and has together with Adi created a Yeezy line that was very successful. And then as creative people, he did some statements which weren’t that good. That meant we lost that business. One of the most successful collabs in history — very sad.”
It’s clear that Adidas’ decision to continue the Yeezy line has had a significant impact on its financial performance.
