Sales for the singer’s inclusive streetwear line, which is produced in collaboration with Adidas, fell more than 50 percent in 2022 to $40 million, far below Adidas’ $250 million revenue projections, according to a new report from the The Wall Street Journal. Adidas also anticipated losing $10 million from the partnership last year.
“Our partnership is strong and successful. As part of our valued strategic partnership with lVY PARK, we continue to be inspired by our collective vision and are proud of the work we have created together,” a company spokesperson told BoF in an emailed statement. “As a matter of principle, we do not disclose key financial figures for individual product categories.”
Beyoncé launched Ivy Park in 2016 as a collaboration with Philip Green, then the owner of Topshop. In 2019, the singer, who recently became the most Grammy awarded artist in history, re-released the line in partnership with Adidas after buying full ownership of Ivy Park in 2018.
Beyoncé’s deal with Adidas, for which she receives $20 million in annual compensation, according to the Journal, is set to expire in 2023. The clothing line, which carries a range of product from leggings to sneakers, was projected to generate $65 million in sales this year, below earlier targets of $335 million.
Ivy Park is the latest celebrity collaboration to take a hammer to Adidas’ top line in recent years. The sneaker giant expected to lose around $500 million in revenues in 2022 after dropping Yeezy sneakers from its assortment following anti-Semitic and anti-Black remarks from Ye, the artist formerly known as Kanye West. Unlike Ivy Park, Yeezy was a revenue driver for Adidas before the brand cut ties with Ye in October 2022.
Top of incoming CEO Bjørn Gulden’s in-tray will be dealing with unsold Yeezy inventory and reversing the brand’s steep decline in China.