Adidas will begin selling existing Yeezy products at the end of May.
Source: Adidas
Adidas said on Friday it will start selling Yeezy products later this month for the first time since it ended its relationship with rapper Ye in October.
The clothing company cut ties with Ye, formerly known as Kanye West, after he made a series of hateful, anti-Semitic comments. Adidas said it will donate a significant amount of sales revenue to at least two organizations that fight discrimination and hate, the Anti-Defamation League and the Philonise and Keeta Floyd Institute for Social Change.
“Selling and donating was the preferred option of all the organizations and stakeholders we spoke to,” Adidas CEO Bjorn Gulden said in a statement.
The ADL aims to fight anti-Semitism, while George Floyd’s relatives’ organization deals with criminal justice and social justice issues. Adidas said it explored many options for what to do with existing inventory after it ended its partnership with Ye, and talked to a diverse group of people about how to move forward.
“We believe this is the best solution because it respects the designs created and shoes produced, it works for our people, solves an inventory problem and will have a positive impact in our communities,” said Gulden. “There is no place in sport or society for any form of hate and we remain committed to fighting against it.”
The products are only available through the Adidas website and app.
Adidas said the move will have no immediate effect on its 2023 financial outlook. Adidas’ most recent earnings beat expectations, but were weighed down by the buildup of Yeezy inventories.
“The lifestyle decline and loss of Yeezy obviously hurts us,” Gulden said during his company’s earnings call earlier this month.
Prior to the split, Adidas had said their partnership with Yeezy was one of the most successful partnerships in the industry’s history.
In October, the Anti-Defamation League urged Adidas to sever ties with its leading sponsor after his snide remarks. The ADL praised the company’s move Friday.
“At a time when anti-Semitism has reached historic levels in the US and is on the rise globally, we appreciate how adidas turned a negative situation into a very positive outcome. They have shown great thoughtfulness in partnering with community organizations working to combat this pernicious and stubborn hatred.” said Jonathan Greenblatt, CEO of ADL.
