Adidas's decision to break ties with Ye, formerly called Kanye West, is costing them bad. It has struggled significantly since its split reporting a latest 24% loss in the first quarter of 2024. Despite the strong demand for Yeezy sneakers, Adidas is prioritizing a swift exit from the partnership, taking a short-term financial hit to move forward without West's controversial brand. The company's decision to sever ties with West led to a glut of unsold Yeezy products, resulting in a significant financial hit. To mitigate losses, Adidas is selling the remaining Yeezy shoes at a loss. 

This has been the case since 2023, when the Yeezys were valued at $324 million, to recover some costs. The situation, however, has only gotten worse. 

As reported by Complex, the German Sportswear giant has started clearing out the remnant of Yeezy at half the price of the original cost. Highly in-demand models like the 350 V2 CMPCT and the Yeezy 450 are out for public sale for a slashed price of 50% off. The price, however, has been fixed as a summer discount which ends on the 13th of this month. 

The sale is, however, online-only, as long as the supplies last, as declared by the official website. A couple of them, like the YZY 700 MVN men's original, have already been sold out within hours of going out for sale. According to the CEO Bjørn Gulden, this was reportedly the last batch of leftover Yeezys that Adidas is washing its hands off. 

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Having bore much loss, what exactly is Adidas trying to do?

Adidas CEO Bjørn Gulden announced the company will sell the remaining Yeezy sneakers at cost, forgoing profit. This move aims to offload leftover inventory, marking a significant shift in strategy. By selling at cost, Adidas prioritizes clearing out Yeezy stock, taking a financial hit to distance itself from the controversial partnership.

Adidas severed ties with Kanye West in October 2022, citing his anti-Semitic remarks and inflammatory behavior. The company ended their lucrative Yeezy partnership, condemning West's hate speech and announcing a bombshell about their relationship. This decision was indeed followed by unhappy customers and humanitarian authorities, leading to a huge fiasco. Not to mention the timely digs at the brand by the rapper himself. 

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What do you think of Adidas’ strategy to get rid of Yeezys? Let us know in the comments below.