After a tumultuous journey, Adidas has officially sold out of its Yeezy inventory, marking the end of one of the most profitable yet controversial collaborations in recent retail history. The partnership between Adidas and Ye, formerly known as Kanye West, began in 2015 but came to an abrupt halt in 2022 following Ye's antisemitic remarks. Despite this setback, Adidas managed to clear its remaining stock by the fourth quarter of 2024, generating significant revenue from these final sales. While the company experienced a 12% increase in overall sales for 2024, North America saw a slight decline, primarily attributed to the absence of Yeezy products. This article delves into the complexities of this partnership and its aftermath.
The collaboration between Adidas and Ye started with great promise in 2015, producing some of the most sought-after footwear and apparel items in the market. However, tensions escalated in 2022 when Ye made a series of inflammatory comments, leading Adidas to sever ties. The company announced plans to liquidate its remaining Yeezy inventory worth approximately $289 million in early 2024. By the end of the year, Adidas had successfully sold all Yeezy products, generating around 650 million euros in revenue. CEO Bjørn Gulden highlighted the importance of moving forward and focusing on the brand's future growth strategies.
Adidas faced challenges in the North American market, where sales dipped by 2% in 2024 due to reduced Yeezy product availability. Despite this regional setback, Adidas reported a 12% increase in global sales, demonstrating resilience and adaptability. The company's ability to recover quickly was partly attributed to Gulden's leadership since taking over as CEO in 2023. Under his guidance, Adidas achieved a 10% increase in currency-neutral revenues during the third quarter of 2024, signaling a return to stability and growth.
Beyond the financial impact, the termination of the Yeezy partnership also brought legal and public relations challenges. Ye publicly accused Adidas of selling counterfeit Yeezys and failing to compensate him adequately. In response, Adidas condemned his "unacceptable, hateful, and dangerous" comments, leading to a legal dispute that was eventually settled out of court. Meanwhile, Ye continued to be embroiled in controversy, making inflammatory statements on social media platforms and appearing in advertisements that drew widespread criticism.
As Adidas moves forward without Yeezy, the company remains focused on rebuilding its brand strength and exploring new opportunities. CEO Gulden acknowledged that while there is still work to be done, 2024 was a successful year that reaffirmed the robustness of the Adidas brand. The closure of this chapter allows the company to concentrate on long-term goals and innovative initiatives, ensuring its continued relevance and success in the competitive retail landscape.