June 5, 2024
According to Adidas’s Q1 2024 earnings report, it still has $215 million worth of Yeezy brand product.
In 2023, Adidas was left with a stockpile of Yeezy brand shoes after its abrupt divorce from rapper and fashion designer Kanye West following remarks he made that were widely condemned as anti-Semitic.
Amid the company’s third release of Yeezy brand products, some of the supply has made its way to Adidas outlet stores, a first for the Yeezy brand.
As Sole Retriever reported, the shoes remain incredibly popular. Adidas has, however, been able to reduce its supply significantly from its starting point shortly after the scandal when it was reported it possessed more than $1 billion in Yeezy products. In 2023, Adidas tried a direct approach, combining sales at retailers and through its Confirmed mobile app with a first-come, first-served waiting list for new releases or drops on its own official website.
As the outlet reported, according to Adidas’s Q1 2024 earnings report, the shoe company has $215 million worth of the Yeezy brand product. It appears that Adidas has moved to allow discounts on the shoes, which contradicts the strategy reported in its earnings report.
Some of the shoes have even popped up at Adidas outlet stores in Dubai, as reported by Complex. Some of those outlets have marked them at 50% less than Adidas’s MSRP.
Per Adidas’s earnings report, “On April 16, Adidas upgraded its full-year financial guidance as a result of the better-than-expected performance in the first quarter. Adidas now expects currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 (previously: increase at a mid-single-digit rate). Within this guidance, it is assumed that the remaining Yeezy inventory will be sold on average at cost, resulting in sales of around €200 million throughout the remainder of the year. This corresponds to a projected total amount of Yeezy-related sales of around €350 million in FY 2024 (previously: around €250 million), of which around €150 million were generated in the first quarter.”
Confirmed! Yeezys in my local Adidas outlet 👀👀
No returns
No discounts what so ever pic.twitter.com/NCEkZ5JB0j
Originally, the strategy behind the promotion of Yeezy brand shoes was that of exclusivity and high demand, driven by that perception of exclusivity. For those who may have been put off by the brand’s previous high entry price point, this represents an opportunity to get the shoes for well below their original market value.
For example, the Yeezy Boost 350 V2 CMPCT is available for $100, down from Adidas’s price of $220. The Yeezy QTNM, listed at $250 by Adidas, is now selling for $120 at some outlets, the Yeezy Boost 380, listed at $380 by Adidas, is going for $100, and the Yeezy 700 MNVN, which is listed on the Adidas website at $220, is selling for $140.
In February, however, Adidas indicated in a news release that the Yeezy releases were only supposed to happen through its own digital platforms.
“As announced at the start of 2024, Adidas will release the remaining YEEZY inventory, which features products from 2022, in the course of the year. The range available will include some of the most popular designs, beginning with the 350 V2 in STEEL GREY.”
The release continued, “The products will be exclusively available through Adidas digital platforms including the CONFIRMED app, Adidas app, and Adidas.com. The phased release of products will help ensure a fair and premium experience for consumers. Availability and timing of release will vary depending on location.”
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