(March 17, 2023 / JNS) Following its termination of collaboration with Ye, Adidas now faces its first fiscal loss in decades.
If the manufacturer cannot figure out how to rebrand and sell $1.3 billion of remaining Yeezy stock (overwhelmingly sneakers), then it will incur a $746 million loss. This intractable problem has only compounded its recent financial challenges; during the COVID pandemic, Adidas stock fell 50% and has yet to recover.
Such losses have made an Adidas acquisition by a rival a possibility. Reuters financial columnist Aimee Donnellan suspects that such other giants in the space as Lululemon Athletica (known for yoga pants) or LVMH (focused on luxury items) may be enticed.
Meanwhile, as Adidas struggles, the cancellation of the deal with Ye has offered a boon to retailers and sneaker collectors. According to Impossible Kicks CEO John Mocadlo, sales had risen 30% since the announcement of the end of the Yeezy shoe brand.
Mocadalo revealed that the Yeezy 350 “Zebra” shoes had increased from the $260 price four months ago to now selling for $340 to $360.
The shoes have also shot up in price on the online auction host eBay.
In the British market (eBay UK), the priciest pair found so far—a Yeezy Foam Runner Sulfurs—is listed for $36,500; others are going for roughly $15,000, $12,000, and $6,000. A current search of the American eBay market shows numerous Yeezy shoes selling at similar prices, with pairs at $12,000, $10,499 and $10,000, and others listed for more than $5,000.
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