Adidas is now selling through its remaining Yeezy stock at a rapid pace. It seems the rapper’s controversial statements and acrimonious split with several institutions haven’t put a damper on public demand.
Adidas recently launched a website selling through its remaining Yeezy stock it produced in 2022 for 2023. The first few batches of stock quickly sold and now those items are up for resale on markets like eBay at a significant premium. These launches included 12 pairs of shoe styles over a two-day period at the end of May.
“It appears as though consumer demand for these products still exist, so at the very least, Adidas should be able to sell through the inventory that was already in place when they terminated the partnership with Mr. West,” writes Wedbush analyst Tom Nikic.
Adidas announced its plan to sell through its remaining Yeezy stock last month. In that statement, the Adidas CEO committed to donating a significant portion of its proceeds to organizations representing people who were hurt by comments made by Kanye West. Adidas debated over what to do with its $1.3 billion of Yeezy product. Recent launches included existing Yeezy designs in new colors.
“While it is uncertain how this will translate into Q2 sales [for Adidas], we believe that the impact could be significant,” adds Nikic. “The fact that all Yeezy products sold out promptly and are now being sold at premium prices in the aftermarket indicates a strong demand and potential for positive sales momentum. As we continue to monitor market dynamics, the performance of Yeezy in Q2 will be an important factor to watch, as it has the potential to act as a significant needle mover for Adidas’ overall financial performance.”
Both Adidas and Gap ended their business partnerships with the rapper. Now Gap is suing the rapper for modifications he authorized to a downtown location to sell his merchandise.