Adidas Reportedly Sitting on Over Half a Billion Dollars Worth of Yeezys

Adidas cutting ties with Kanye West has actually ended up being a significant gamble, since it has more than half a billion dollars worth of the person’s shoes to offer, without his name any longer.

We currently understood Adidas was preparing to progress with offering unbranded Yeezys post-split, now … we have a bit more insight into why. According to the Financial Times, experts at the tennis shoe business claim Adidas is sitting on a big mountain of Yeezys.

Per the report, the stock the business has total up to about $530 million … and Adidas is obviously eager to hawk them to prevent taking an even larger hit than what it’s openly divulged so far — which was currently looking rather grim for end-of-year numbers.

On leading of the shocking quantity of shoes it needs to move — which Adidas is reportedly rushing to find out how to do it — the feet story enters into some information about how deeply connected it was to Yeezys and to what degree Adidas was hinging its success on it.

In 2022 alone, Yeezys made Adidas upwards of $1.8 billion … and comprised around 7% of its overall revenues. The report likewise states Yeezy has actually remained strong as a continuous item in the Adidas wheelhouse considering that a minimum of 2019, which may describe why Adidas took so long to lastly cut ties with Kanye — the guy (and his shoe brand name) was actually its golden goose.

Adidas has actually reportedly currently set a date for its very first informal Yeezy release … the business is calling it the Adidas 350 V2 “Granite,” and it’s expected to retail for $230 — dropping in January.

There’s been a lot of dispute online over whether individuals need to (or will) purchase what Adidas is attempting to offer now … however this report makes it clear — it’s banking on sneakerheads continuing to cop, since if they do not … it might indicate difficulty for the shoe business.