Adidas has reportedly raised a whopping £340 million (~$435 million) by selling the first batch of Kanye West’s leftover Yeezy stock. The sportswear brand terminated its partnership which Yeezy last October following a series of remarks from the rapper that were viewed as anti-Semitic. According to Adidas, the company was exploring multiple options to offload the existing Yeezy inventory, which is said to be worth $1.3 billion. Rather than destroying the inventory and writing it off, Adidas decided upon selling the Yeezy sneakers in batches. “This is much better than destroying and writing off the inventory and allows us to make substantial donations,” said Adidas CEO Bjørn Gulden.
Adidas had revealed that it will donate a significant amount raised from the sale to selected organizations working to combat discrimination and hate, including racism and antisemitism. Among the organizations that will benefit from the sale are The Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, founded by George Floyd’s brother Philonise. The company’s CEO had previously admitted that the ending of the longstanding partnership with Yeezy was “hurting” the business of the sportswear brand. However, the first batch sale alone accounted for around 85% of the company’s $194 million operating profit last quarter. The second batch of Yeezy sneakers went on sale at the beginning of this month, available through Adidas digital platforms and select wholesale partners.