Adidas, the renowned sportswear brand, had previously collaborated with Kanye West, known as Ye, on the highly popular Yeezy line of sneakers.
Adidas details future post-Yeezy
However, in October 2022, Adidas terminated its partnership with the artist following his antisemitic remarks and public antagonization of the brand.
Ownership of Yeezy Sneaker Rights
After parting ways with Kanye West, Adidas asserted its ownership of the rights to the Yeezy line of sneakers. The brand intended to utilise these rights in the future, as stated by Adidas CFO Harm Ohlmeyer in November 2022.
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During Adidas’ Q2 2023 earnings call, CEO Bjørn Gulden responded to inquiries about the possibility of producing Yeezy designs without Kanye West’s involvement.
He confirmed that, although legally feasible, there are currently no plans to do so. Gulden cited timing as a crucial factor in the decision, leaving open the possibility of producing Yeezys under a different name in the future.
“No plans of taking Yeezy designs and transferring them to Adi. Yes, legally we could, but I think that would be the wrong timing,” he revealed.
Adidas decided to sell the existing stock of Yeezy sneakers that were in production before the partnership termination. The revenue generated from these sales would be partially donated to charity. This decision came after careful consideration, given the potential backlash following Kanye West’s controversial statements.
Adidas Q2 2023 Earnings Report
Adidas reported nearly flat revenue for Q2 2023, experiencing a 5% decline compared to the same period in 2022. Despite the challenges faced by the brand, it remains optimistic about future prospects.
Addressing shortcomings in the basketball sneaker market, Gulden outlined strategies to engage teenage NBA fans in the US.
Adidas aims to strengthen its position in basketball footwear with the launch of the Fear of God line, collaboration with signature athletes, and a new design office in Los Angeles.
Emphasis on Lifestyle Sneakers
As part of its future plans, Adidas is shifting its focus towards popular lifestyle sneakers. The classic Samba and Superstar models will receive particular attention in the brand’s strategy.
Adidas recognised the demand for the Samba sneaker and decided to increase production to meet customer needs. The Samba, originally intended to be limited in 2023, will now be more widely available.
In the coming years, Adidas plans to emphasise ’70s running silhouettes, such as the SL 72, scaling these models into the second half of 2024 to cater to fashion trends.
Adidas envisions the Superstar making a comeback in fashion circles. The brand aims to “clean up” the market and reposition the Superstar as a sought-after sneaker by the year 2025.
Collaboration and strategic positioning in the higher-end market will play a significant role in achieving this goal.
