Is Yeezy a $1.3 billion business?
today Jun 28, 2019
In the course of nearly five years, Yeezy has become a leading player in the sneaker market, bringing to it a distinctive style and register. The brand is intimately linked with the reputation of US rapper/producer/entrepreneur Kanye West, and relies on the industrial and commercial fire-power of the Adidas group.
Last year, Kasper Rorsted, CEO of the German group, hinted at the intention of making Yeezy even more of a factor: “No doubt Yeezy has a crucial influence on our brand’s global position, but within the broader context of a $25 billion corporation, it represents only a small part of our business.”
At the time, it was hard to ascertain the real worth of Kanye West’s label, as well as the nature of the agreement linking him to Adidas. Rorsted then announced in the spring that Adidas is looking to launch some 20 new Yeezy models this year. The label’s strength lies in maintaining an exclusive aura, despite the increasingly hefty product launches.
In an article published by the New York Times, a source was asked about Kanye West’s contribution to Adidas’s business, and said that Yeezy is expected to exceed $1.3 billion in sales in 2019. West is said to earn a 5% royalty on net sales of Yeezy shoes and apparel.
However, Kanye West’s ambition to overtake Michael Jordan remains unfulfilled. Last year, the Nike group’s Jordan sneaker brand recorded sales for over $2.8 billion.
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