Adidas Reaches Agreement with Yeezy — Retail Bum

German sportswear giant adidas has struck a $500 million deal with Ye, formerly known as Kanye West, to sell its remaining Yeezy inventory.

The news comes three months after adidas cut its 2022 forecast reeling from its breakup with Yeezy, which reduced its annual earnings by half.

The company’s CEO, Bjørn Gulden, noted that 2023 would be a period of transition for adidas.

“We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again,” Gulden said. “But we need some time.”

According to various reports, the deal will allow for the sale of non-branded Yeezy sneakers, with plans for no new designs to be produced under the Adidas-Yeezy label.

Adidas’ shares rose 3% to over €140 jumped on Monday following the news.

Earlier this month, it was revealed that the company is also struggling with its IVY PARK line, which it launched in collaboration with Beyoncé in 2016. According to the Wall Street Journal, almost half of the IVY PARK line has gone unsold for the past five of the six seasons. In 2022, the product line sold $40 million worth of products, a 57% decline compared to the year before. And in 2023, the brand expects just $65 million in sales, significantly lower than the previous target of $335 million.

Originally published at https://retailbum.com on February 27, 2023.