Adidas is said to make over half a billion dollars from Yeezys

Adidas cuts ties with Kanye West It turned out to be quite a gamble, because she had over half a billion dollars worth of shoes for the man to sell, without ever mentioning his name anymore.

We already knew Adidas was planning to move forward with selling unbranded Yeezys after the split, but now…we have more information on why. According to the financial timesInsiders at the sneaker company claim that Adidas is sitting on a massive mountain of Yeezys.

According to the report, the company’s inventory is about $530 million…and it looks like Adidas Keen to hawk them To avoid taking a bigger hit than what has been publicly disclosed so far – which was already looking pretty bleak for year-end numbers.

On top of the staggering amount of shoes it has to move — which Adidas is said to be scrambling to figure out how to do — FT’s story goes into some detail about how deeply it’s connected to Yeezys and how far Adidas has been holding up. success in it.

In 2022 alone, Yeezys generated more than $1.8 billion in revenue from Adidas… which made up about 7% of their total earnings. The report also says that Yeezy has been going strong as a stable product in Adidas’ wheelhouse since at least 2019, which may explain why Adidas has taken so long to finally Cut ties with Kanye — the guy (and his shoe brand) was literally the cash cow.

And Adidas has reportedly set a date for its first unofficial Yeezy…the company has dubbed it the “Granite” Adidas 350 V2, and it’s supposed to retail for $230 — and it’ll drop in January.

There’s been a lot of debate online about whether people should (or will) buy what Adidas is trying to sell right now…but this report makes it clear – it’s based on The sneaker following continues in the copBecause if they don’t… it could spell trouble for the shoe company.