Adidas will continue to sell Ye's shoe designs without Yeezy name (2024)

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Adidas will continue to sell Ye's shoe designs without Yeezy name? ›

But Adidas (ADDDF) will continue to sell the lucrative sneaker and apparel line, stripped of the Yeezy name and branding. The company said it's the sole owner of all Yeezy line design rights for both existing and future colors and versions.

Adidas said Wednesday it plans to sell existing inventory of products designed for the Yeezy collection without using the name, telling reporters on a conference call that the company owns the rights to the designs.

Adidas shared its preliminary financial results for 2023 today, where the global sportswear brand confirmed it "plans to sell the remaining Yeezy product at least at cost in 2024." Adidas CEO Bjørn Gulden said that the sale of the remaining Yeezy inventory will occur at cost, and the sales of the sneakers are expected ...

We all know how the story ended: Adidas broke up with Ye, but per contractual agreement, it owns Yeezy's designs. Adidas cleared out much of its remaining Yeezy inventory last year, but has recently announced it will sell its remaining inventory in 2024, beginning with a Yeezy 500 tactical boot.

"Following the latest decision, the 2023 operating profit now only includes a low double-digit million amount of Yeezy-related inventory write-offs. Instead, the company plans to sell the remaining Yeezy product at least at cost in 2024," Adidas said in a news release.

More losses could be ahead as the company forecast a roughly $535 million hit to earnings this year if it decides not to repurpose the remaining Yeezy products it has in stock. The company is predicting a 2023 operating loss of nearly $750 million.

For example, “YZYSPLY” as well as “YEEZY” are both owned by Mascotte Holdings, Inc., which is Kanye's holding company that now encompasses his music, designs, and much, much more. However, most of the sneaker designs have adidas listed as the owner of the design patent.

“After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products, and stop all payments to Ye and his companies. Adidas will stop the Adidas Yeezy business with immediate effect.”

Yeezy sneakers continue to hold substantial investment potential in 2024. Their enduring popularity, high resale value, and the cultural significance associated with the brand position them as a compelling investment option within the sneaker resale market.

Collapse of Adidas' Ye Partnership Contributed to a Net Loss for the Company in 2023. The company gave over $150 million to anti-hate groups from Yeezy sales last year, though North American revenue dropped 16% in part due to "negative Yeezy impact."

How much is Kanye West worth in 2024? ›

Kanye West, a prominent figure in the music, fashion, and business industries, has seen significant fluctuations in his net worth over the years. In 2024, his net worth is estimated to be $410 million, a substantial decrease from his peak net worth of $2.5 billion in the same year.

Adidas divorced with Kanye West, now known as Ye, in October 2022 after a tirade of anti-Semitic remarks from the rapper. The company decided in the middle of 2023 that it would continue to sell the remaining Yeezy inventory — about $1.3 billion worth — and donate the proceeds to charity.

Now, the Financial Times has reported that this figure is significantly higher. Four million YEEZY orders that day brought in $565 million USD of revenue for adidas according to the Times. Based on the reported 15% royalty figure for Ye, this would amount to just under $85 million USD for the artist.

Despite controversy surrounding the brand, Adidas decided to sell remaining Yeezy inventory last year, and donate a “significant amount” of the proceeds to organizations that combat discrimination, hate, racism and antisemitism. The sneaker giant cut ties with West in 2022 after a series of antisemitic comments.

Adidas is once again putting Yeezy sneakers up for sale through its digital platforms — unloading the remainder of its inventory after the company cut ties with rapper Kanye West over his antisemitic remarks.

Yeezy influenced and inspired a multitude of other fashion brands. Outside of the former Adidas collaboration, Yeezy is the name of Kanye's company Yeezy LLC and is not connected to Adidas.

“Looking ahead, on our understanding, the company will not sell any Yeezy-branded products and all Yeezy products will be branded under Adidas brand,” said Morgan Stanley analyst Edouard Aubin in a note to his clients on Tuesday.

The trademarks for most Yeezy sneakers can be found registered with the U.S. Patent and Trademark Office under Adidas, though Ye's company has applied for trademarks pertaining to the Yeezy brand.