Adidas will reportedly lose out on a additional $200M on Beyoncé’s “Ivy Park” this year on top of losing $1.3B from Yeezy sneakers.
Sales of Beyonce’s Adidas x Ivy Park clothing line down more than 50%: report
Beyoncé—Ivy Park reportedly underperformed by $200 million last year.
Back in 2019, The R&B/Pop megastar signed a major deal with adidas. It was said to be a multi-layered partnership, with Bey herself saying, ‘This is a partnership of a lifetime’. Four years on and multiple collections later, it seems the ongoing Ivy Park collaboration hasn’t been as profitable as initially thought.
Members of the BeyHive are ready to drop hundreds on Beyoncé concert tickets — but apparently not on her activewear.
Sales of Ivy Park, the “Cuff It” singer’s clothing line with Adidas, dropped by more than 50% last year, the Wall Street Journal reported (Feb. 8.), Wednesday taking in just $40 million as compared to $93 million in 2021.
Beyoncé’s line has performed well under the sportswear giant’s plans, with documents reviewed by the newspaper showing Adidas had projected $250 million in sales for 2022.
However, “In five of the last six Ivy Park releases, roughly half of the merchandise that was produced went unsold, the documents show,” the Wall Street Journal reported, adding that the line is “losing money for Adidas.”
Beyoncé and adidas launched IVY PARK in 2016. At the time, the singer called the deal a “partnership of a lifetime.” However, it seems as if the products are not selling as expected.
In the past five of the six seasons, almost half of the merchandise produced was left unsold. The $40 million USD made in 2022 sees more than a 50% decline from the $93 million USD made the year prior. For 2023, IVY PARK is projecting sales of $65 million USD, a much lower target than the previous $335 million USD. The music mogul’s contract with the sportswear giant is set to expire after 2023. In the past, the pair have disagreed on how to market the line. Adidas has wanted more focus on their branding, however, IVY PARK wanted the opposite. It remains to be seen how this deal with thrive down the line.
The struggles of the line further underscore the challenge facing Adidas in the wake of its split with Ye, formerly known as Kanye West. The company lost ground against rival Nike in recent years and hasn't found any big tranches of sales to replace the estimated $2 billion in sales generated by Ye's Yeezy line.