Adidas Is Reportedly Losing Money From Its IVY PARK Partnership With Beyoncé
The brand deal ends after 2023, and adidas executives are reportedly discussing whether they want to keep the brand.
It seems like Beyoncé fans are going crazy for tickets to her Renaissance world tour, but not her IVY PARK partnership with adidas.
A recent report by The Wall Street Journal states that the record-breaking Grammy winner‘s collaboration with the sportswear giant has significantly dropped in sales. In 2022, the line made approximately $40 million USD, which showed more than a 50% dip from $93 million USD in 2021. The clothing and footwear line had been projected to make $250 million USD in sales last year.
In documents acquired by the Journal, “roughly half of the merchandise that was produced went unsold” and IVY PARK is ultimately “losing money for adidas.” In 2023, the line is projected to make $65 million USD. It was previously expected to make $335 million USD this year.
With the decrease in sales, it’s unknown whether the partnership will continue — the IVY PARK deal is ending after 2023 while adidas’ executives are still in discussions about whether to keep the brand.
adidas has been capitalizing on celebrity partnerships with the likes of Pharrell Williams on Humanrace and Kanye West on YEEZY, of which the latter has been terminated ever since the rapper made controversial remarks, despite the fact that the collaboration earned the sportswear company a huge success. adidas and Beyoncé’s team reportedly had disagreements on how to market the IVY PARK brand, and the “Cuff It” singer also didn’t wear pieces from the label as much as Ye did for paparazzi shots.
IVY PARK is slated to launch its latest collection “PARK TRAIL” on February 9.
- Source
- The Wall Street Journal
