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Yeezy Sales Generate $374M In Weak Quarter For Adidas

  • Adidas has continued to sell Yeezy shows in the wake of Ye’s antisemitic comments.
  • The brand is donating proceeds from the sales to anti-hate groups.
Adidas Yeezy shoes on a shelf.
Shutterstock

Adidas didn’t post a strong earnings report for its most recent fiscal quarter — but its association with controversial rapper Ye, formerly known as Kanye West, continues to stoke high interest among consumers.

Sales of the brand’s Yeezy shoes brought in $374 million during Adidas’ third quarter. After initially parting ways with the rapper in the wake of his antisemitic comments, Adidas had more than $1 billion worth of Yeezy stock remaining. The most recent report brings the total revenue from Yeezy sales past $800 million since the relationship ended. 

Instead of destroying the remaining Yeezy merchandise, Adidas decided to continue selling it and donate the proceeds to anti-hate groups. The company has yet to decide whether it will sell the remaining $320 million of stock next year or write off the inventory as a loss.

Overall, Adidas reported a significant decline in operating profits year-over-year, down 27.5% to $438 million — with the Yeezy saga a major factor in the business losses. Total revenue was down 6% to $6.41 billion, including a 10% dip in North American sales.

Adidas stock remains relatively flat, down less than 2% but not falling below $90, as of Wednesday afternoon.

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