Adidas sold last pair of Yeezy sneakers

Herzogenaurach, Germany - Adidas (ADSGn.DE) sold its last remaining pair of Yeezy sneakers in the fourth quarter, the sportswear brand said on Wednesday, ending the process of liquidating stock of the lucrative shoe line developed with rapper Ye following their split in October 2022.

Adidas has been trying to put the Yeezy episode behind it since public anti-Semitic rants by Ye, formerly known as Kanye West, forced it to end the highly profitable partnership, denting revenues and driving the company to an annual loss in 2023.

The company has felt the loss of Yeezy particularly in the United States, where the shoes were popular. In results reported on Wednesday Adidas said North America sales fell 2% in 2024, "solely due to significantly lower Yeezy sales".

The company started selling off its remaining stock of Yeezy shoes in May 2023, pledging to donate part of the proceeds to organizations combating anti-Semitism, including the Anti-Defamation League.

Adidas reported it sold 650 million euros worth of Yeezy sneakers last year, making a profit of around 200 million euros.

That is down from the year before, when Adidas made 750 million euros in revenue from Yeezy inventory, generating 300 million euros in operating profit.

The company has set aside 260 million euros for charitable donations from the proceeds of Yeezy sales, CEO Bjorn Gulden told a press conference. That amounts to about half of the operating profit Adidas made on selling off its stock of the sneakers in 2023 and 2024.

Of that, 200 million euros is held in a foundation set up by Adidas, while 60 million has already been paid out to charity organizations, Gulden said.

(Reporting by Helen Reid; Editing by Mrigank Dhaniwala, Louise Heavens and Tomasz Janowski)