Adidas gets $565 million in orders for 1st batch of unsold Yeezy shoes: Report

livemint.com:

Adidas alleged that it deposited $75 million into two Yeezy bank accounts, but according to Bloomberg, Kanye West (Ye) and his associated companies "mishandled almost all of the marketing funds." They reportedly failed to maintain proper separation of the funds and used them for unauthorized purposes. In May 2023, CEO of the German sportbrand Bjørn Gulden later said that the company decided to sell a portion of its remaining inventory and donate the proceeds to chartitable organizations.  Adidas reported 400 million euros (USD 441 million) in lost sales at the start of 2023.

Net sales declined 1 per cent in the first quarter, to 5.27 billion euros, and would have risen 9 per cent 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. (With inputs from Reuters)