Adidas officially concluded its liquidation of Yeezy sneakers in the fourth quarter of 2024, effectively closing the chapter on a tumultuous and controversial partnership with the artist now known as Ye. This partnership, which had become one of the brand’s most lucrative, came to a bitter end in October 2022 following a series of public anti-Semitic remarks by Ye that led to widespread backlash and the termination of the collaboration.
Since that split, Adidas has faced the challenging task of navigating the aftermath of the Yeezy controversy while trying to rebuild its brand reputation and recover financially. The decision to discontinue the line may have seemed straightforward, but the repercussions were felt deeply, particularly in the U.S. market where Yeezy sneakers had gained a cult-like following. In fact, during a recent earnings report released by Adidas, it was noted that North American sales dropped by 2% in 2024, a decline attributed “solely to significantly lower Yeezy sales.” This drop highlights how reliant the company had been on this emblematic line, making the financial fallout all the more acute.
Adidas began the offloading process of its remaining Yeezy inventory in May 2023, pledging to donate a portion of the proceeds to organizations addressing anti-Semitism, including the respected Anti-Defamation League. This move was not just a financial one, but a responsible step aimed at making amends for the turmoil that ensued post-breakup. In total, the company sold off roughly €650 million (about $696 million) worth of sneakers in 2023, which generated an estimated €200 million in profits. This marked a noticeable downturn from previous years; sales during the height of the Yeezy craze raked in €750 million in revenue and an impressive €300 million in operating profit.
Bjørn Gulden, Adidas’s CEO, revealed that the company allocated €260 million of the Yeezy profits for charitable donations—about half of the total operating profit from the Yeezy stock sales in both 2023 and 2024. This pledge includes €200 million currently held in a dedicated foundation established by Adidas, with €60 million already distributed to various charitable organizations.
The fallout from this venture reminds us how closely intertwined our brands are with the values they represent. For consumers, it’s a stark reminder that choices have consequences—not just for companies, but also for society as a whole. As users, the moral implications of our purchases are increasingly influencing how we shop. In this case, Adidas is stepping forward, not only to address the damage caused by the Yeezy saga but also to show that there’s a commitment to using the revenue generated in a more socially responsible way.
As we keep an eye on Adidas’s journey towards recovery, there’s a sense of hope that lessons learned from this situation will encourage all brands to support initiatives that foster inclusivity and social good. In an era demanding accountability, brands that take the right steps toward restitution and responsibility can begin to rebuild trust and consumer loyalty.
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