Adidas
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Source: Kanye West Purchases Second City In Wyoming To Bring Yeezy Production / Kanye West Purchases Second City In Wyoming To Bring Yeezy Production To The US
The adidas/Yeezy quagmire has finally found a solution. The three-stripe brand has finally decided it will sell it’s $1.3 billion worth of Yeezy apparel that it recalled after Yeezus went on an antisemitic crusade a few months back.
According to Hypebeast, adidas and Kanye West have come to an agreement to sell all the sneakers and apparel that adidas recalled from the shelves of sneaker stores across the board. And to avoid any kind of backlash from the decision, adidas will donate all the money they get to charity. Kanye, meanwhile will keep the 15% commission he’s entitled from every sale made from the Yeezy line (of course he will).
After months of speculation of what adidas would do with the remaining pairs of Yeezy sneakers it had in storage, rumors had began swirling that they’d do everything from give them away to incinerate them, to quietly move them on resale websites to make their money back and then some. But now we’ve finally gotten a concrete answer. They’ll just basically sell them for charity.
Hypebeast reports:
At the time of writing, it’s still unclear how much stock will be released to the market, what exact models and colorways will be launched and how it will drop (CONFRIMED App, online stores or wholesale retailers) as well as how much of the proceeds will be donated. “What we are trying to do now over time is to sell some of this merchandise…burning the goods would not be a solution,” Bjørn Gulden, CEO of adidas commented. The sportswear imprint pondered about donating all of the sneakers but felt that it would lead to them reaching the market in a volatile way.
It’s still going to reach the secondary market either way, but the question is what kind of resale value Yeezy’s will carry given the nature of Kanye West’s “canceling” in pop culture. After Kanye West’s deal with adidas was voided a few months ago, many expected resale prices for his Yeezy line to skyrocket, as they weren’t going to be sold or produced anymore. They didn’t. They experienced a slight bump in resale value but nothing remotely close to say a pair of Travis Scott x Air Jordan 1’s.
Now that we’ll be getting whatever stock is left, who knows if resale prices will rise or plummet in the wake of the new selloff. Either way, some charity out there will be more than glad to accept whatever monetary donation they get from adidas. And we can’t be mad at that.
What do y’all think of adidas deciding to sell their Yeezy stock and giving a portion to charity? Let us know in the comments section below.
After months wrestling over the fate of milions of unsold Yeezy shoes, Adidas said Thursday it will sell a portion of its remaining inventory and donate the proceeds to charitable organizations.
The German sportsware company cut ties with Ye, the rapper formerly known as Kanye West, in late October, following his antisemitic comments on social media and in interviews. Since then, the fate of 1.2 billion euros ($1.3 billion) worth of the unsold Yeezys, a lucrative sneaker line launched with Ye, has been up in the air.
At Adidas’ annual shareholders meeting, CEO Bjorn Gulden said the company had spent months trying to find solutions. He said the company spoke to nongovernmental organization and groups that were harmed by Ye’s comments and actions.
“Burning those shoes cannot be the solution,” Gulden said, adding that Adidas will try to sell part of the remaining Yeezy inventory and “donate money to the organizations that help us and were harmed by what Ye said.”
Exact details of the plan — including how many shoes will be sold and the timeline of selling them — were not disclosed. Gulden said the company will provide updates as it moves forward.
The move comes as Adidas is trying to stage a comeback and move beyond the Yeezy partnership. Cutting ties with Ye has cost the company hundreds of millions of dollars — contributing to a loss of 600 million euros ($655 million) in sales for the last three months of 2022, helping drive the company to a quarterly net loss of 513 million euros.
Adidas reported 400 million euros ($441 million) in lost sales at the start of 2023, the company announced last week.
Net sales declined 1% in the first quarter, to 5.27 billion euros, and would have risen 9% with the Yeezy line, the company said. It reported a net loss of 24 million euros, a plunge from a profit of 310 million euros in the same period a year ago.
Operating profit, which excludes some items like taxes, was down to 60 million euros from 437 million euros a year earlier.
Meanwhile, Adidas is also facing a class-action lawsuit from investors who allege the company knew about offensive remarks and harmful behavior from Ye years before terminating its pact with him. Adidas has pushed back on the allegations made.
Still, Gulden reminded investors that the nine-year partnership between Adidas and Ye was “sensational.”
While he noted that Ye is a difficult person, “he’s the most creative person in our industry,” Gulden said. “He created a model with Adidas that was sought after around the world.” But he added, “We lost that in a month.”
A group of investors has filed a class action lawsuit against Adidas, alleging the sportswear giant knew about Kanye West‘s problematic “personal behavior” years prior to ending its partnership with the rapper but failed to warn them about it.
The complaint — representing people who acquired Adidas securities between May 3, 2018, and February 21, 2023 — also names Adidas’ former CEO, Kasper Rorsted, and CFO, Harm Ohlmeyer, as defendants, alleging the executives “employed devices, schemes and artifices to defraud” investors and that the company “failed to take meaningful precautionary measures to limit negative financial exposure” in the event the partnership was terminated as a result of West’s behavior.
West is not named as a defendant in the suit.
Filed Friday (April 28) in U.S. District Court in Oregon, the lawsuit’s “substantive allegations” cite comments made by West (now known as Ye) dating back to 2018, including a notorious TMZ interview in which the rapper called slavery “a choice.” The complaint goes on to point out that Adidas “stuck by” West following his comments and includes excerpts from Rorsted’s 2018 interview with Bloomberg in which he said, “We neither comment nor speculate on every single comment that our external creators are making.” It also includes various offensive comments West directed at the Jewish community as well as his quote, “I can say anti-Semitic things and Adidas can’t drop me,” made during the rapper’s October 2022 appearance on the podcast Drink Champs.
On October 25, 2022, just days after the Drink Champs episode aired, Adidas ended the partnership.
The suit also alleges that Adidas failed to make investors aware that the rapper made “offensive remarks at Company premises” and that the company’s publicly released reports between 2018 and 2021 did not acknowledge “serious issues affecting the partnership” in their “Business Partner Risk” sections. The sections did, however, acknowledge that “improper behavior” from entertainers and athletes representing the brand could have a “negative spill-over effect on the company’s reputation.”
Pushing back on the allegations, Adidas said in a statement to The Associated Press on Monday: “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them.”
The suit makes mention of the initial “positive impact” of West’s partnership with Adidas, and the $1 billion worth of sales Yeezy shoes hit by 2019. The Yeezy brand — owned by West and licensed to Adidas — became a streetwear pillar and ushered in a new era of popular style. However, West’s insensitive comments and actions eventually overshadowed his artistic talent.
After the partnership ended, Adidas reported a $540 million loss in the fourth quarter of 2022, partially due to unsold Yeezy clothing and shoes. The company has also projected a total loss of $1.3 billion in “full-year revenue” for 2023 resulting from the unsold products.
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It’s been a minute since adidas publicly severed ties with Kanye West over his antisemitic outbursts, but now the three-striped brand is being taken to court by investors who feel they waited too long to make the business decision.
Bloomberg is reporting that investors have filed a lawsuit against Adidas claiming that the German sportswear conglomerate knew the risks of partnering with the likes of Kanye West, but rolled the dice anyway and crapped out when it was all said and done. Apparently the higher ups at Adidas did indeed discuss the potential hazard that Kanye West presented back in 2018, but decided to continue their partnership with the controversial artist. That did not end well for anyone.
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In a 2018 annual report, released in March of the following year, Adidas ignored serious issues of partnering with Ye – and the risk to shareholders – by “generally alluding” to the risks “rather than stating that the company had actually considered ending the partnership as a result of West’s personal behavior,” according to the complaint.
Reports in subsequent years failed to disclose that West made anti-Semetic comments to Adidas staff, at one point suggesting that he might name an album after Adolf Hitler, according to the complaint. As the relationship with Ye eroded, so did Adidas shares, until the deal was terminated, according to the filing.
To make matters worse for Adidas, even after they cut ties with Kanye West, the company continued to accept shipments of Yeezy products from suppliers who were still producing it. Ultimately Adidas ended up with $1.3 billion in Yeezy merchandise that they now plan on selling off and giving the money to charity.
The lawsuit, which seeks to representing investors who bought Adidas securities between May 3, 2018 and Feb. 21, also names ousted former CEO Kasper Rorsted as a defendant.
The case is HRSA-ILA Funds v. Adidas, 23-cv-629, US District Court for the District of Oregon.
2023 is looking to be a struggle year for Adidas given everything that Kanye has wrought on the company.
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The Nordstrom Spring Sale is here! For a limited time, shoppers can save on shoes, clothes, beauty and grooming products, home goods and other spring essentials.
The sale offers up to 60% off bestselling brands, but if you’re looking for some of the deepest deals, you’ll need to hit up the men’s shoe department. Sneaker lovers can save up to 76% off tops brands including Adidas, Nike, Puma, Reebok and New Balance in addition to Fear of God, Givenchy, Raf Simons, Jill Sander, Alexander McQueen and other designer brands.
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To make things easier for you, we dug through the sale to find eight of the best deals on men’s sneakers. See the roundup below, and for more spring shopping recommendations, be sure to read our picks for the best music festival gear and can’t miss tech deals.
Adidas ’84 Forum Low Sneaker
$65 $100 35% off% OFF
With more than 2,000 customer reviews, it’s safe to say that Adidas’ ’84 Forum Low Sneaker has its own fan club. The ’84 Forum Low is on sale in blue and white colorways as well as purple and gold, and red white and blue. You can also find Forum ’84 Lows on sale at Adidas for $59.
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Fear of God The Essentials Tennis Mid Top Sneaker
$103.25 $295 65% off% OFF
Fear of God’s Essential Mid Top Sneaker is a sustainable shoe to cop during Earth Month and beyond. This casual shoe is made from pieces of recycled leather and available in cement, tobacco and warm taupe.
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An all-time classic. The ultra-comfortable New Balance 574 sneaker is on sale in four colorways including arctic gray (pictured) apollo gray, agave green and black/red.
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Vans U-Sk8 Hi-Sneaker
$39.98 $79.95 50% off% OFF
The walnut-colored Vans SK8 Hi-Sneaker is currently half-off at Nordstrom. This popular shoe has a velvety-smooth upper with a padded collar and rubber waffle sole.
Sorel Explorer Waterproof Sneaker Boot
$91
Part sneaker, part boot. The Sorel Explorer Waterproof Mid Sneaker will help you take on cold and rainy weather in style.
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Nike Air Presto
$67.60 $130 48% off% OFF
With more than 20 years under its belt, the Nike Air Presto is officially vintage. This high-performance running sneaker first hit the market in 2000 and has been a hit ever since. The Air Presto is on sale in select colors including the teal design pictured above along with black, white and gray.
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Nike Air Max Terrascape 97 Sneaker
$129.50 $185 30% off% OFF
Another vintage shoe from the Nike catalog, the Air Max Terrascape ’97 sneaker features the signature ripple design inspired by Japanese bullet trains. This shoe is on sale in summit white and black/elemental and pink/lime.
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Alexander McQueen Court High Dunk Sneaker
$272 $850 68% off% OFF
Alexander McQueen‘s Court High Dunk Sneaker offers up one of the deepest Nordstrom deals that you can find on men’s shoes. Marked down nearly 70%, this high-performance dunk sneaker features an airy mesh, color-pop accents and an exaggerated rubber sole.
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Ever since Kanye West went “death con 3” on the Jewish community, adidas has been experiencing a decline in both popularity, maybe, and sales, definitely. So it was surprising that the three-stripe brand decided to pick a legal fight specifically with the Black Lives Matter Global Network Foundation over their use of a logo that resembled the three stripes that adidas is known for.
Reuters is reporting that adidas has decided to back off its lawsuit and have retracted its initial claims just days after taking Black Lives Matter to court saying that the organization’s logo was “likely to cause confusion” between adidas and BLM. Though the three parallel lines that BLM was using did resemble the look on the Fear of God x adidas sneakers that leaked the other day, the brand isn’t looking for another public relations disaster just months after Kanye West put them on the hot seat with his antisemitic outbursts.
From Reuters:
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“Adidas will withdraw its opposition to the Black Lives Matter Global Network Foundation’s trademark application as soon as possible,” said the German athleticwear company in a statement.
A source close to the company said the rapid about-turn was triggered by concern that people could misinterpret Adidas’ trademark objection as criticism of Black Lives Matter’s mission.
Good call, adidas. Still, the German sports brand did rescind its “opposition without prejudice,” which means they reserve the right to once again take BLM to court on the same grounds in the future when they don’t have as much heat on them in the public eye. That could take a while as their popularity out in these streets is still struggle post-Yeezy. Outside of their Fear of God collaboration, it doesn’t seem like they have any heat dropping anytime in the near future.
With Kanye West basically radioactive these days and Beyoncé and her Ivy Park brand out the door, adidas doesn’t have much going for them these days. Suing Black Lives Matter might’ve proved too much to recover from.
Black Lives Matter meanwhile was trying to get in the merchandise game and “applied for a federal trademark in November 2020 covering a yellow three-stripe design to use on a variety of products including clothing, publications, bags, bracelets and mugs.”
We not gonna lie, we might be coping some three-stripe BLM merch once it drops. Just sayin’.
What do y’all think of adidas suing Black Lives Matter over their trademark and then backtracking just a few days later? Let us know in the comments section below.
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After years of theories and hype, the adidas and Fear of God collaboration is finally upon us. We’ve gotten a sneak peak at what Jerry Lorenzo and his brand have been crafting in the lab.
Three years after leaving Nike to work with adidas, Jerry Lorenzo is finally ready to unveil what he and adidas have been cooking up in the kitchen. In a statement released to Complex, Lorenzo let it be known that the time to drop the collection is upon us and we can’t wait to see what they have in store for us mortals. After a leaked pic of the sample Fear of God x Adidas silhouette dropped on social media, Jerry Lorenzo reached out to Complex to let them know he’ll be revealing the collection himself next month and to not believe everything they see on the internet.
“This is not the basketball sneaker from Fear of God and Adidas,” Lorenzo said of today’s leak, adding that the Fear of God x Adidas performance sneakers and ready-to-wear collections will be officially unveiled on April 19 during the Hollywood Bowl showing of Fear of God’s 8th Collection.
Truth be told, these sneakers ain’t bad though. Just sayin.’
Whether or not these sneakers are actually part of his collection or something someone put together at home in hopes of getting noticed by Adidas or Lorenzo himself is anyone’s guess, but the man obviously isn’t too happy with heads jumping the gun on something he’s been working on for the past few years.
That being said, now we’re more hype to see what the collection from the Fear of God x Adidas will be looking like as Lorenzo seems confident that heads will be more than pleased with what he’ll be unveiling at the Hollywood Bowl come April 19.
Are you looking forward to the Adidas x Fear of God collection? Do y’all think Jerry Lorenzo can salvage what’s left of Adidas popularity post-Kanye West? Let us know in the comments section below.
Jimin, Luke Combs, Løren, Rosalía & Rauw Alejandro all released new albums. Baby Tate & Saweetie gave us the collab we didn’t know we needed. Beyoncé & Adidas end their Ivy Park partnership due to creative differences. Latto builds her dream girl group. Selena Gomez urges fans to stop sending Hailey Bieber hate. Anitta stopped by Billboard News and spilled about the music she’s been listening to, what she’s working on next, the questions she hates being asked during interviews, and more!
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Source: ADIDAS / Ivy Park
Months after cutting ties with Kanye West, adidas has parted ways with yet another big time celebrity. Their partnership with Beyoncé and her Ivy Park brand has come to an end.
According to The Hollywood Reporter, after five years of working together, Beyoncé and adidas have mutually agreed to go their separate ways. The news comes a month and change after it was revealed that sales for Beyoncé’s Ivy Park clothing line was down 50% and the three-stripe brand had been left roughly $200 million in the hole behind the lackluster sales. While the lack of sales could be blamed for the breakup, apparently creative differences between Bey and adidas are what led to the separation.
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Now that Queen Bey is fully in charge of Ivy Park and is back in the driver’s seat, she “is excitedly looking to reclaim her brand, chart her own path and maintain creative freedom.”
There is no word on whether another sports brand will be partnering with Beyoncé to relaunch Ivy Park in the near future. But we wouldn’t be surprised if Puma ends up undertaking the process as her hubby, Jay-Z, is the creative director of its Basketball division. It’s something that just seems a long time in the making.
From The Hollywood Reporter:
In 2016, Beyoncé debuted Ivy Park, which was a joint venture with Sir Philip Green of Topshop. The 50-50 venture with Topshop ended in 2018, and Beyoncé gained full ownership of Ivy Park.
In January, Beyoncé previewed Park Trail, her latest Adidas x Ivy Park collaboration, in Dubai a day before she performed a private concert in the city. It marked her first live show in four years.
For someone who boasts such a dedicated fanbase and world-famous BeyHive on social media, we’re kinda surprised they didn’t come out to support her Ivy Park brand in droves. The collections were pretty cool, and the colorways were as fresh as anything out in the market. Just sayin’.
What do y’all think Beyoncé should do with her Ivy Park brand now that it’s a free agent? Should she fly solo or link up with another top-tier brand going forward? Let us know in the comments section below.
After coming together with Adidas in 2018 to relaunch her athleisure brand Ivy Park, Beyoncé has parted ways from the sportswear giant, in a move that sources tell The Hollywood Reporter was mutual.
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The split was reportedly due to creative differences between Ivy Park and Adidas, with Beyoncé excited to “reclaim her brand, chart her own path and maintain creative freedom,” The Reporter writes.
During what Adidas referred to as “a partnership of a lifetime,” Ivy Park launched several collections, with the first launching in April 2019. The drop was fully equipped with a massive PR campaign involving closet-size traffic-cone-orange boxes being sent to celebrities including Missy Elliott, Cardi B, Kendall Jenner, Angela Bassett, Ciara, Reese Witherspoon and Hailey Bieber.
Despite the glittery promotional content, Ivy Park apparently did not live up to the hype Adidas was anticipating when they initially promised Beyoncé “guaranteed annual fees and creative control,” according to a Wall Street Journal piece from February. Instead of producing the hundreds of millions in revenue that Adidas expected — the company hoped Ivy Park would perform similarly to Ye’s Yeezy brand — Ivy Park releases undersold, with roughly half of the merchandise from five of the six releases remaining on shelves.
The Wall Street Journal article also indicated differences in strategy between Adidas and Ivy Park when it came to marketing, with the German multinational corporation pushing for their own branding. At the end of 2022, Ivy Park was predicted to reach $40 million in sales, down from $93 million the year prior. Although Adidas was positioned to lose at least $10 million in 2022, Beyoncé was set to make the same amount in compensation as previous years: $20 million.
Beyonce launched Ivy Park in 2016 with Top Shop owner Sir Philip Green. When the partnership ended in 2018, Bey’s Parkwood Entertainment acquired full ownership of the streetwear brand. Despite the breakup, Beyonce has much to look forward to considering the frenzy surrounding her upcoming Renaissance World Tour, kicking off in May. The mega-tour has already caused mayhem among fans eager to see the superstar IRL and will begin in Stockholm, spanning dates throughout Europe and North America.
Billboard has reached out to reps for Beyoncé and Adidas for comment.