According to a report, Foot Locker made the decision not to display surplus Yeezys in their stores due to concerns about the backlash associated with stocking Kanye West’s controversial brand. Complex reported that Adidas had enlisted the help of retailers like Foot Locker to sell off their remaining Yeezy inventory after ending their partnership with the rapper. However, Fearful of a public relations nightmare, Foot Locker executives decided against associating themselves with Ye, who was ousted by Adidas in October after making offensive remarks, including antisemitic comments, as an unnamed source revealed.
As Adidas continues to sell its remaining Yeezy products, they have pledged to donate a significant portion of the sales to organizations combating racism and antisemitism, such as the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, founded by George Floyd’s brother. While the exact amount of the donation has yet to be determined, it is expected to exceed $9 million. Unfortunately, Foot Locker was unable to incorporate a charitable aspect into their sale of Yeezys, as sources informed Complex. The Post’s request for comment was left unanswered by Foot Locker.
Earlier this year, Adidas faced a dilemma with their unsold Yeezy sneakers, even considering destroying up to $500 million worth of inventory. However, experts advised against this course of action, as it would not generate revenue and could stir up backlash regarding waste and environmental costs. Ultimately, the German sportswear giant chose to sell the sneakers in batches, with a portion of the proceeds going towards charitable causes, thus distancing themselves from Ye’s controversial remarks about Jewish people. The first batch of 4 million Yeezys went on sale in June and sold out within 48 hours. According to the Financial Times, demand for the shoes exceeded expectations, to the point where Adidas couldn’t fulfill all the orders. This successful sale is expected to prevent a significant loss for the company in terms of unsold stock. Ye is rumored to receive royalties from the sales, although the exact amount is unknown. Forbes estimated that Ye earned $220 million annually from the partnership, which began in 2019. The proceeds from the sale will also cover expenses related to the termination of the partnership, including legal fees, production facility closures, and staff layoffs. By 2019, Yeezy had surpassed $1 billion in annual sales, contributing to Ye’s net worth. However, due to a series of public meltdowns, Adidas severed ties with Ye, causing him to fall out of the billionaire ranks. In October, Adidas pulled Yeezy shoes from the market following Ye’s offensive remarks, including antisemitic comments.
While excess Yeezy inventory had a negative impact on the company’s first-quarter profits, the successful selloff yielded positive results in the second quarter. Adidas stated in their earnings report that their second-quarter revenues were boosted by the initial sale of some of their Yeezy inventory. The quarter recorded an operating profit of $193 million, which included approximately $175 million in “one-off costs, donations, and accruals for future donations,” likely related to the Yeezy selloff.
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