Adidas has by far received over 508 million euros ($565 million) worth of orders for its very first batch of online sales of its unsold Yeezy shoes, as per a report by Financial Times.
As per the report, the sneaker company had got orders for 4 million pairs which it said were better than its “most optimistic forecast”.
The newspaper said that the massive demand for the first batch of online sales of shoes would help in potentially saving the company from having to take a big writedown on its remaining stock.
Adidas had stopped selling Yeezy shoes after it had cut ties with rapper Ye, formerly known as Kanye West, in the month of October last year after he made a series of antisemitic comments in interviews and social media.
Due to the defunct partnership, the highly profitable line hit first-quarter sales at the company by around $440 million.
However, the strong demand for the unsold pair of shoes had suppressed fears at the company’s headquarters that Ye’s outbursts and a plunge in marketing in the recent past would have made the Yeezy brand too toxic, FT said, citing sources.
As per reports, the shoe brand did not comment on the matter saying that it was in a “quiet period” ahead of its quarterly results due Aug. 3.
Adidas said in the month of May that it would donate some of the proceeds from the sales to organisations battling with antisemitism and racism.
As per FT reports, the discussions on how much proceeds will be donated to individual charities are still ongoing, further adding that the company has chosen five charities in the US and China as a first step.
“Making donations of more than 8.5 million euros across the five charities has been discussed but no decision has been made,” FT said, citing people familiar with the matter.
The final sum donated from the sales will be much larger as the company is willing to pay a significant share of its profits from the Yeezy inventory, said the report.
This year, the company had predicted a loss before announcing its intentions to sell leftover Yeezy stocks.
(With inputs from agencies)
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.
For all the latest business News Click Here
