Adidas Officially Ends Yeezy Chapter, Donating Proceeds to Charity After Contentious Split
Adidas, the German sportswear giant, has officially closed the book on its controversial and once highly lucrative partnership with rapper Ye, formerly known as Kanye West, announcing that all remaining Yeezy sneakers have been sold by the end of 2024. The announcement signals the definitive end to a turbulent period for the company, which saw its reputation and financial performance significantly impacted by Ye’s antisemitic remarks in October 2022, ultimately leading to the termination of their collaboration.
The ending of the Yeezy line marks a significant shift for Adidas, who had enjoyed immense success with the brand for years. The Yeezy sneakers were a cultural phenomenon, coveted by sneakerheads and fashion enthusiasts alike, contributing significantly to Adidas’ revenue stream. However, Ye’s public outbursts and antisemitic rhetoric created an untenable situation for Adidas, forcing them to make a difficult decision that would inevitably affect their bottom line.
"There is not one Yeezy shoe left, it has all been sold and that episode is behind us," declared Chief Financial Officer Harm Ohlmeyer at a press conference following the release of Adidas’ latest financial results. The statement underscores the company’s desire to move forward and distance itself from the controversy that plagued it for the past two years.
The financial impact of the Yeezy fallout was considerable. Adidas reported an annual loss in 2023, partially attributed to the disruption caused by the termination of the partnership. The loss of Yeezy’s popularity was particularly felt in the United States, a key market for Adidas, where the sneakers were highly sought after. According to Adidas’ report, North America sales declined by 2% in 2024, a decrease directly linked to the absence of Yeezy sales.
Despite the initial financial setback, Adidas made a strategic decision to liquidate its remaining Yeezy inventory, rather than destroy the unsold shoes. The company recognized the potential to recoup some of the lost revenue while also making a positive impact by donating a portion of the proceeds to organizations fighting antisemitism and other forms of discrimination.
In May 2023, Adidas commenced the process of selling off its remaining Yeezy stock, committing to donate a significant portion of the generated funds to charitable causes. The decision was met with mixed reactions, with some praising Adidas for its commitment to social responsibility, while others questioned whether it was an adequate response to the harm caused by Ye’s hateful statements.
Throughout 2023 and 2024, Adidas successfully sold a substantial volume of Yeezy sneakers. In the past year alone, the company generated 650 million euros ($696 million) in revenue from Yeezy sales, yielding a profit of approximately 200 million euros. The year prior, the Yeezy inventory contributed 750 million euros in revenue and 300 million euros in operating profit. These figures highlight the significant financial contribution of the Yeezy brand to Adidas’ overall performance, even during its final stages.
Notably, Adidas has allocated 260 million euros from the Yeezy sales proceeds for charitable donations. CEO Bjorn Gulden revealed that this amount represents approximately half of the operating profit derived from the sale of the remaining Yeezy sneakers in 2023 and 2024. This significant commitment underscores Adidas’ efforts to mitigate the negative impact of the controversy and support organizations dedicated to combating antisemitism and promoting tolerance.
Of the 260 million euros earmarked for charitable giving, 200 million euros has been deposited into a foundation established by Adidas. The remaining 60 million euros has already been disbursed to various charity organizations, including the Anti-Defamation League, a leading organization dedicated to fighting antisemitism and all forms of hate. The donations are intended to support programs and initiatives aimed at combating prejudice, promoting education, and fostering understanding across diverse communities.
The decision to donate a portion of the Yeezy sales proceeds to charity was a conscious effort by Adidas to address the harm caused by Ye’s antisemitic remarks and demonstrate a commitment to social responsibility. While the donations do not erase the pain and damage caused by Ye’s words, they represent a tangible effort by Adidas to support organizations working to combat hate and promote inclusivity.
As Adidas moves forward, the company faces the challenge of rebuilding its brand image and regaining the trust of consumers who were alienated by the Yeezy controversy. The company is focusing on its core values of innovation, sustainability, and inclusivity, and is investing in new products and initiatives that align with these principles.
The end of the Yeezy era represents a significant turning point for Adidas. While the partnership was once a source of immense success, it ultimately became a liability due to Ye’s problematic behavior. Adidas has taken decisive action to sever ties with Ye and liquidate its remaining Yeezy inventory, demonstrating its commitment to ethical business practices and social responsibility. As Adidas embarks on a new chapter, it remains to be seen how the company will navigate the challenges ahead and solidify its position as a leading global sportswear brand. The company hopes that by closing this chapter and focusing on its core values, it can regain the trust of its customers and move forward with a renewed sense of purpose.
