Adidas Fires Beyoncé for Declining Ivy Park Sales
Beyoncé and the world’s second-largest sports apparel brand, Adidas, have amicably decided to end their partnership, marking the end of
Beyoncé and the world’s second-largest sports apparel brand, Adidas, have amicably decided to end their partnership, marking the end of an era. The decision comes as Ivy Park, Beyoncé’s fashion brand, experienced a significant drop in sales, plummeting by over 50% to $40 million in 2022, well below Adidas’ initial projection of $250 million. This decline prompted Adidas to issue a profit warning to its investors as the company seeks to recover from substantial losses and refocus on its core product lines.
Adidas’ recent struggles can be attributed to its partnership strategy over the past few years, which revolved around collaborations with various artists, including Bad Bunny, Pharrell Williams, and rapper Kanye West, also known as Ye. Only one of these partnerships consistently met or exceeded its financial expectations.
Regarding Ivy Park, the brand’s revenue in 2021 amounted to $93 million, but it saw a significant decline to $40 million in 2022, falling far short of the projected $250 million. The outlook for 2023 is not much brighter, with projected revenue of $65 million, well below the target of $335 million, as the Wall Street Journal reported.
Adidas’ contract with Beyoncé stipulated an annual payment of $20 million to the superstar, and this partnership was originally set to expire at the end of this year.