Why it matters: Adidas is trying to solve a public relations problem.
the publications on the adidas website The Yeezy Boost 350 V2 sneakers, in black and a two-tone red and gray, which sold for €200 a pair, or about $213, generated a stir on social media, reflecting the brand’s enduring popularity. The shoes go on sale Thursday.
Adidas said its decision to break ties with Ye cost the company €1.2 billion in lost sales and about 500 million euros of profit this year.
Options for removing inventory ranged from burning it to donating it to those in need. Mr Gulden said figuring out what to do with the remaining shares is “one of the toughest decisions I’ve ever been a part of.”
But Yeezy shoes have been known to sell for as much as $1,000 a pair and they remain popular despite their association with Ye. At the time, the company said it had made the decision in consultation with groups including Black Lives Matter and the Philonise & Keeta Floyd Institute for Social Change, led by Philonise Floyd, the brother of George Floyd.
Jonathan A. Greenblatt, executive director of the Anti-Defamation League, which is among the groups set to benefit from the proceeds from the sale, welcomed Adidas’s decision as one appropriate to the complexity of the issue.
“This is a thoughtful and careful resolution for unsold merchandise,” Greenblatt said.
But other groups pointed out that despite Adidas’ promise to donate the proceeds, Ye would continue to make money from sales. Adidas has declined to comment on how much that would be, but Gulden previously said Ye still had a royalty contract that Adidas was bound to honor.
“Adidas’s willingness to donate the proceeds is highly commendable,” said Josef Schuster, president of the Central Council of Jews in Germany, but added: “The fact that Kanye West benefits financially from the sale is highly problematic.”
Backstory: The end of a hugely lucrative partnership.
The Yeezy brand became a defining force in the sportswear industry and an incredibly lucrative cornerstone for Adidas. The partnership between the rapper and the Germany-based company was hailed as the most successful sportswear collaboration since Michael Jordan teamed up with Nike.
But last fall, Ye’s erratic behavior and comments directed at blacks, Jews and others caused quite a stir. Adidas was pressured for not reacting, after other brands broke ties with the artist.
What’s Next: More Yeezy styles may be on sale.
In addition to the two styles on sale, the website shows images of a dozen other styles, suggesting more could be announced in the coming weeks.
Adidas said it was considering more releases from Yeezy’s inventory, but did not give a timeline. Customers were asked to download an app and sign up to receive updates.