June 5th 2024.
In 2023, Adidas found itself with a surplus of Yeezy brand shoes due to the unexpected split from rapper and fashion designer Kanye West. This was a result of controversial remarks he made that were widely criticized as anti-Semitic. As a part of the brand's third release, some of the excess supply has made its way to Adidas outlet stores, marking a first for the Yeezy brand. Despite the setback, the shoes remain highly sought after, and Adidas has successfully decreased its inventory since the scandal broke.
Initially, Adidas implemented a direct approach to selling Yeezy products by utilizing various retailers, their mobile app, and their official website. However, according to Sole Retriever, the company's Q1 2024 earnings report revealed that they still have $215 million worth of Yeezy brand products. It seems that in an effort to move this excess inventory, Adidas has started offering discounts on the shoes, which goes against their previous strategy. These discounts have been spotted at Adidas outlet stores in Dubai, where some shoes are being sold at 50% off the original price.
In light of this, Adidas has updated their financial guidance for 2024, expecting a mid- to high-single-digit increase in revenue. This includes the projected sale of €350 million worth of Yeezy products, with €150 million already generated in the first quarter. This is a significant change from their initial plan of selling the remaining inventory exclusively through their own digital platforms.
For consumers, this means a unique opportunity to purchase Yeezy shoes at a reduced cost. Previously known for their exclusivity and high price point, these discounted shoes offer a chance to own a sought-after product at a more affordable price. Some examples of the discounted prices include the Yeezy Boost 350 V2 CMPCT for $100 (originally $220), the Yeezy QTNM for $120 (originally $250), the Yeezy Boost 380 for $100 (originally $380), and the Yeezy 700 MNVN for $140 (originally $220).
In February, Adidas stated in a news release that all future Yeezy releases would only be available through their own digital platforms, such as the CONFIRMED app, Adidas app, and Adidas.com. This was announced as a way to ensure a fair and premium experience for consumers. However, with the recent discounts and availability in outlet stores, it seems the brand's strategy may have shifted.
As the brand moves forward from their split with Kanye West, it remains to be seen how they will continue to promote and sell Yeezy products. In the meantime, fans and sneaker enthusiasts can take advantage of the discounted prices and potentially snag a pair of Yeezys from their local Adidas outlet store.
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