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How the new Yeezy drops revived adidas

Kanye's brand is still selling

How the new Yeezy drops revived adidas Kanye's brand is still selling

Last May, adidas and Kanye West completed a deal whereby Yeezy products that had remained idle were put up for sale. An amount of merchandise worth 1.2 billion euros, 15% of the commission was promised to West, while another part was donated to charity, to associations that protect the rights of people who have been offended by the artist's statements. In America, despite the controversy surrounding Kanye West, demand for the adidas sneakers designed by the artist was still booming, and indeed sales were a success. According to adidas, which released its full-year guidance this week, the decision to put the Yeezys back on the market was instrumental in turning the company's fortunes around, a result evident in second quarter sales.

According to adidas, while the expected losses from the Yeezy recall could have amounted to €500 million, the figure is now around €400 million. New Yeezy drops, the company confirmed, could help adidas' revenues in the future as well, although this latest quarter shows that regular sales have also exceeded expectations. Compared to last year, sales were unchanged this second quarter, despite currency revenue falling by 5%. Until the sale of the remaining Yeezys, adidas was posting significant profit declines. Last week, adidas announced a new Yeezy releases in August.