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sportswear giant Adidas AG (OTC:ADDYY) has received more than 508 million euros ($565 million) in orders for its 4 million unsold pairs of Yeezy shoes.
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The Financial Times reported that there is huge demand for the first part of the online sales, which is expected to save the company from Bavaria, Germany, from writing down large inventories.
Adidas stopped selling Yeezy shoes due to links with the rapper. Kanye Westwho is now known as Ye, was fired due to the singer’s anti-Semitic comments.
The loss of Yeezy cost the shoe company a staggering $440 million in the first quarter of 2023.
In May, Adidas said it would sell some of its inventory as it would cost around 500 million euros to destroy it, and donate some of the proceeds from Yeezy sales to organizations fighting anti-Semitism and racism.
The company previously said it would make a loss in fiscal 2023, its first operating loss in 31 years, before deciding to sell the remainder of its Yeezy shares.
Thomas Chauvet, head of luxury and sporting goods research at Citibank, expects Adidas to update its revenue and earnings forecast “to reflect the initial sale of Yeezy inventory.”
Adidas is likely to post earnings for the second quarter of 2023 on August 3rd.
Adidas stock movement
Shares of ADDYY rose 1.19% to $95.94 on Friday.
Image: Shutterstock
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