Once again, Adidas has proven to benefit from the popularity of Yeezy.
The athletic-wear brand revealed that parting ways with Yeezy was “hurting” business. In 2022, it saw a 20% decline in North American sales.
As the company returned to offering Yeezy, it began donating a portion of sales to organizations fighting against antisemitism and racism.
“After careful consideration, we have decided to begin releasing some of the remaining Adidas YEEZY products,” Adidas CEO Bjørn Gulden said in an official statement at the time. “Selling and donating was the preferred option among all organizations and stakeholders we spoke to. We believe this is the best solution.”
Since then, Adidas has been on the rise, earning $437 million in revenue from Yeezy merchandise in the second quarter of 2023. As it approaches year end, the company has provided further updates, disclosing that Yeezy played a role in its third-quarter improvement.
“While the company’s performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying adidas business also developed better than expected,” Adidas said in a statement.
Per Forbes, the second quarter saw Adidas achieve sales of Yeezy merchandise totaling over $400 million. Additionally, the company anticipates its operating loss to reach approximately $106 million for this year, which is a decline from the $491 million projected loss two months prior.
“Including the positive impact from the two Yeezy drops in Q2 and Q3, the potential write-off of the remaining Yeezy inventory of now around € 300 million (previously: € 400 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), adidas now expects to report an operating loss of around € 100 million in 2023 (previously: loss of € 450 million),” the company said in a statement.