Many people saw this coming. Superstar Beyoncé and Adidas have parted ways. Her troubled Ivy Park activewear line will no longer be under the Adidas brand.
This break comes on the heels of Adidas ending a multi-year deal with Kanye West that has cost the German sneaker company at least $1billion.
Beyoncé and Adidas entered their deal in 2018 as a creative partnership with Adidas, where she relaunched her Ivy Park activewear line. So she relaunched her Ivy Park activewear line and also developed new footwear and apparel for the brand.
There have apparently been major creative differences between Ivy Park and Adidasd. Beyoncé is excitedly looking to reclaim her brand, The Hollywood Reporter reported.
Beyoncé originally debuted Ivy Park in 2016 as a joint venture with Sir Philip Green of Topshop. The 50-50 venture with Topshop ended in 2018, giving Beyoncé full ownership of Ivy Park.
Let’s look at the math.
In February, Beyoncé’s clothing line missed internal sales projections by more than $200 million in 2022, the Wall Street Journal reported on Feb. 8. The German retail giant is losing significant money. This news comes after the company ended a highly lucrative partnership with hip-hop mogul Kanye West over antisemitic remarks he made.
Although her clothing line isn’t making nearly what was expected, Beyoncé is still raking in $20 million annually from the deal.
Ivy Park generated about $40 million in sales in 2022, a significant drop of more than 50 percent from the $93 million it pulled in in 2021. The company had projected the line would do $250 million in sales in 2022.
In 2023, Adidas projects the line will do $63 million in sales. The company projected sales of $335 million for the year.
In 2022 alone, Adidas will lose $10 million on the line.
Meanwhile, in February, Adidas also announced it could lose $1.3 billion in unsold inventory after dissolving its deal with Ye, formerly Kanye West.
Adidas has collaborated since 2013 with Kanye, whose product line generated an estimated 4-to-8 percent of the company’s sales, according to investment bank Cowen.
Beyoncé (Photo: Adidas x IVY PARK)