Adidas sells first batch of leftover Yeezys for $437 Million.
The company‘s brings in $437 million from the first Yeezy sale, Some of the proceeds will go to anti-hate groups
Adidas sold first batch of Yeezy’s brand.
The German Sportswear company raked in roughly $437 million from the first sale of leftover Yeezy brand stock, with a portion of those profits benefitting charities like the Anti-Defamation League and a non-profit founded by George Floyd’s brother.
“We are happy with the way the second quarter developed,” Adidas CEO Bjørn Gulden announced. "The core adidas business was slightly better than we expected. Although we still have too much slow-moving inventory in the market, sell-through has been improving. We also saw gross margin in our core business improving strongly compared to the first quarter. The operating profit of [$194] million was substantially higher than our initial plans. The sale of the first part of the Yeezy inventory did of course help both our top and bottom line in the quarter....The sale of the Yeezy product positively impacted adidas’ operating profit by an incremental amount of around [$165] million in Q2.”
The first sale saw the company offload up to a quarter of its Yeezy backlog, worth about $530 million, after it severed ties with the designer, per The Associated Press.
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