Adidas Sells Off Final Kanye West Inventory: 'Not One Yeezy Shoe Left'

After months of strategic sell-offs, Adidas has officially sold the last of its Yeezy sneakers, finalizing the most controversial chapter in its history. The German sportswear giant confirmed that as of the end of 2024, no Yeezy sneakers remain in stock, approximately two years after ending its relationship with Kanye West (now known as Ye) due to his antisemitic remarks in 2022.

Adidas CEO Bjørn Gulden addressed the development, stating,

We can confirm that as of this month, there is not one Yeezy shoe left in our inventory. That episode is behind us. The future is all we think about now, innovating, fostering our athletes in the way we can, building brands in keeping with our values.

The Adidas and Yeezy Partnership

Adidas launched its Yeezy collaboration with Kanye West in 2013, and it quickly became one of the most lucrative sneaker deals in history. By 2015, the Yeezy brand was generating nearly $2 billion in annual sales, at one point accounting for as much as 10% of Adidas' yearly revenue.

However, in October 2022, Adidas abruptly ended the partnership after Ye made repeated inflammatory statements. The split left Adidas with approximately $1.3 billion in unsold Yeezy inventory. The company struggled to offload the stock without indirectly benefiting Ye, who was contractually entitled to a 15% royalty share on sales.

In 2023, Adidas decided to sell off its remaining Yeezy products through controlled releases, donating a significant portion of the proceeds to charities. This approach aimed to minimize financial losses while distancing itself from the controversy surrounding Ye.

Financial and Reputational Reckoning

The dissolution of the Yeezy line had significant financial implications for Adidas. The company reported its first annual loss in three decades in 2023, with a $540 million hit from the split. Shares plummeted by over 60% during the height of the controversy but have since partially recovered.

In 2024, despite the challenges, Adidas generated approximately $830 (€750 million) million from Yeezy sales, contributing to an overall 12% increase in sales for the year. However, North America experienced a 2% decrease due to lower Yeezy sales.

Charitable Contributions

Adidas committed to donating a significant portion of the proceeds from its final Yeezy sales to charities fighting discrimination and antisemitism. The company has earmarked approximately $280 million for these causes, with $200 million placed in a foundation for future contributions and $60 million already distributed. 

The beneficiaries include the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change.

The Road Ahead for Adidas

Adidas is doubling down on sustainability and a sense of inclusivity after the Yeezy saga has concluded. In April of 2024, the company announced that all its products would be made using only recycled polyester by 2025 and topped it off with a tentative list that included transgender climber Leo Baker and Paralympic sprinter Fleur Schouten.

On an earnings call, Gulden teased some possible high-profile partnerships but would not offer more details. “We are talking to a number of innovators who share our vision.” He also said that firms will need to expect bold moves in 2025.

Despite optimism, challenges remain. Adidas still has work to do to regain its squad position in the lucrative North American sports-shoe market, and crucial companies like Nike and Puma remain competitive in the main markets.

Retail partners, however, express cautious confidence. Foot Locker CEO Mary Dillon pointed out that Adidas has a storied history of reinvention.’ They could be existential if not their comeback era.”

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