Adidas is now selling its remaining Yeezy stocks at a rapid pace. It seems the rapper’s controversial statements and bitter rift with several institutions haven’t dampened public demand.
Adidas recently launched a website selling the remaining Yeezy stocks the company produced in 2022 for 2023. Initial stocks quickly sold out and now these items are available for resale on markets such as eBay at a significant premium. These market launches included twelve pairs of shoe models within two days at the end of May.
“It looks like consumer demand for these products is still there, so Adidas should at least be able to sell above the inventory that was already in place when they ended the partnership with Mr. West.” writes Wedbush analyst Tom Nikic.
Adidas announced its plan to sell its remaining Yeezy shares last month. In the statement, the Adidas CEO pledged to donate a significant portion of its proceeds to organizations representing people hurt by Kanye West’s comments. Adidas debated what to do with its $1.3 billion Yeezy product. Recent launches have included existing Yeezy designs in new colors.
“While it is uncertain how this will impact second quarter sales (for Adidas), we believe the impact could be significant,” adds Nikic. “The fact that all Yeezy products sold out quickly and are now being sold at premium prices in the aftermarket indicates strong demand and potential for positive sales momentum.” As we continue to monitor market dynamics, Yeezy’s performance in the second quarter will be an important factor to monitor as it has the potential to act as a key driver of adidas’ overall financial performance.”
Both Adidas and Gap ended their business partnerships with the rapper. Now Gap is suing the rapper over changes he made to a downtown location to sell his products.