Major companies were quick to part ways with Kanye West in 2022, after the rapper shared anti-Semitic sentiments during a podcast appearance. Adidas was among those to drop West, and the German company has certainly felt the effects of the business move. As of late, it’s been reported that the business has lost a more than a billion dollars due to terminating its Yeezy brand. Months later, it would seem that the shoes are still very popular, though. Demand for the high-profile kicks is now apparently at an all-time high, so some may wonder why the corporation is losing money. Well, there’s a reason for that.
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Though Yeezys are apparently getting some serious buzz right now, Adidas isn’t getting to benefit from the surge in popularity. The sneakers are currently making the rounds by way of Impossible Kicks, a major online reseller. CEO John Mocadlo caught up with CNN Business and explained that Kanye West’s shoes are now one of the top three most popular brands that the clothing entity offers. And they’re in good company, as the other two brands are Jordan and Nike. Mocaldo also provided some major numbers to back up his assertions:
“Demand for Yeezys has surged 30% since last October-November. … We sell about 30,000 sneakers in total every month. Probably 6,000 to 7,000 of those right now are Yeezys.”
John Mocadlo attributes this surge in sales to the notion that many fans want to procure the shoes as collector’s items. They could indeed rise in value now that Adidas is no longer producing them. However, as the exec also mentioned, others simply just like the footwear and find them to be comfortable. The black-and-white edition of Yeezy 350 is reportedly the most sought-after of the kicks, according to Mocadlo. Those particular sneakers can apparently be priced between 25% to 40% above their retail value, making the resale number between $350 and $400.
This is a serious boon for the brand itself, but given that sales are going through a reseller, Kanye West (who recently wed Bianca Censori) can’t indulge in the spoils. At present, the Grammy winner is dealing with the blowback of the controversial sentiments he shared months ago. After making the anti-Jewish remarks, he also lost his partnerships with Vogue, Balenciaga and Def Jam. West would eventually lose his billionaire status – mainly due to the Adidas move – and amid the flurry of financial hits, West himself said he’d been “beat to a pulp.”
As mentioned, the shoe company that Ye was formally aligned with also hasn’t been in best shape after due to dropping him. That sharp drop in revenue even caused the company to receive a steep downgrade in its S&P rating. If that weren’t all, the business is also seeing significant losses when it comes to its deal with Beyoncé.
It would seem that Kanye West’s actions are having some interesting aftershocks – both within and outside the fashion industry. (Tech start-up Kano is trying to raise money after splitting from the rapper.) There’s no indication as to how Adidas and West might navigate their financial crossroads at this time. But what seems incredibly apparent now is that the products they once co-created will remain in circulation for the foreseeable future.
source: cinemablend.com
