Adidas Is Reportedly Sitting On $530 Million Worth Of Yeezys

BYAlexander Cole16.6K Views
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Celebrity Sightings - Paris Fashion Week - Womenswear Spring/Summer 2023 - Day Seven
Kanye West aka Ye is seen wearing a Balenciaga boxing mouthguard, outside Givenchy, during Paris Fashion Week - Womenswear Spring/Summer 2023 - Day Seven on October 02, 2022 in Paris, France. (Photo by Edward Berthelot/GC Images)
After severing ties with Kanye, it seems like Adidas has a lot of Yeezys in its warehouses.

At this point, everyone knows that Adidas has dropped Ye from its brand. After all, Kanye was doing some wild things on social media at the time, and quite frankly, he still is. Overall, no brand wants to be associated with straight-up Nazi propaganda, at least not post-World War 2.

Now that Ye is gone from the brand, Adidas has had to make some huge decisions in regard to how the brand will operate. Yeezy made up seven percent of their business. Additionally, according to USA Today, Yeezy accounted for $1.8 billion in revenue this year. Had it not been for the controversies, that number would have been higher

Kanye West, center, and his son, Saint West, got front row seats next to Golden State Warriors co-owners Joe Lacob and Peter Guber as they watch the game against the Boston Celtics in the second quarter at Chase Center in San Francisco, Calif., on Wednesday, March 16, 2022. (Photo by Ray Chavez/MediaNews Group/The Mercury News via Getty Images)

Adidas Has A Problem On Its Hands

In a new report from the Financial Times, it was revealed that Adidas is currently sitting on $530 million worth of Yeezys. By this, we mean the Yeezys that already had the Yeezy branding on them. In the future, the three-stripes brand will sell the original designs without Yeezy branding. However, they produced a whole lot of sneakers prior to cutting ties with Ye.

At this point, there is no telling what Adidas could even do with the shoes. No matter what, they are in an incredibly bad spot. If they burn the shoes, then that is $530 million down the drain. Meanwhile, they can't sell them because that would be against the morals of the brand.

Kanye West onstage during the 2022 BET Awards at Microsoft Theater on June 26, 2022 in Los Angeles, California. (Photo by Paras Griffin/Getty Images for BET)

Overall, this has been a hard time for the brand, and it will only get harder from here. Without Yeezy, Adidas could see some massive losses in 2023. Not to mention, there is no guarantee that the Yeezy rebranding is successful.

Let us know what you think Adidas should do, down in the comments below. Additionally, stay tuned to HNHH for the latest news from the sneaker world.

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About The Author
Alexander Cole is the current Managing Editor of HotNewHipHop. He started at HotNewHipHop back in 2018 where he began as a Sports and Sneakers writer. During this time, he has shown an expertise in Air Jordans, Yeezys, and all things that have to do with Nike. His favorite kicks are the Air Jordan 1 High OG, the Air Jordan 4, the Air Jordan 6, and the Adidas Yeezy Boost 350 V2 in the "Beluga 2.0" colorway. Although his collection might not be the biggest, he is always looking to add new styles to it. When it comes to sports, Alex has a particular interest in the NBA and the NFL. His favorite teams are anywhere LeBron goes, and the Kansas City Chiefs. As a Montrealer, the Montreal Canadiens hold a special place in his heart, even if they haven't won the Stanley Cup in his lifetime. Alex also works for the Concordia Stingers, where he provides play-by-play and color commentary for the football, hockey, and basketball teams His favorite hip-hop artists are Kendrick Lamar, Playboi Carti, Travis Scott, and Lil Uzi Vert.