Beyoncé is one of the biggest entertainers in the world, but that doesn’t guarantee every one of her ventures will be successful. The singer’s line with Adidas is reportedly underperforming, and it may have something to do with the company’s failed partnership with Kanye West’s Yeezy brand.
According to The Wall Street Journal, sales for Beyonce’s Ivy Park line have fallen by over 50%. Though the line was projected to make $250 million in 2022, it only made $40 million.
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Adidas has responded to the reports to defend Beyonce’s Ivy Park line. “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,” an Adidas spokesperson said.
“As a matter of principle, we do not disclose key financial figures for individual product categories,” they continued.
Beyonce launched Ivy Park with Adidas in 2020, and the partnership is set to expire this year, should Adidas choose not to renew. The Wall Street Journal added that Adidas hasn’t decided whether to continue the line or not after this year.
It’s speculated that Kanye’s long-standing collaboration with Adidas has hurt their reputation, despite the company pulling the plug on the partnership last year.
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Adidas initially announced it was reconsidering its partnership with Kanye’s Yeezy in October following the rapper’s anti-semitic and anti-Black comments. However, they didn’t officially cancel it at the time, likely because of the billion-dollar revenue the collaboration brought the company annually.
The athletic brand subsequently faced backlash for not officially pulling the plug, as Kanye’s controversial antics continued.
Within weeks, Adidas did cancel the years-long collaboration.
“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a statement. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
Adidas also ceased production of all Yeezy-related products, and pulled them from their stores.
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They’ve also announced their plans to continue selling Yeezy-inspired products, but without Kanye’s involvement.
“Adidas is the sole owner of all design rights registered to existing product,” Harm Ohlmeyer, Adidas’ Chief Financial Officer, stated in November. “We intend to make use of these rights as early as 2023.”
However, Adidas is reportedly struggling to sell $530 million in Yeezys since cutting ties with Kanye. Couple with the decrease in sales of Beyonce’s Ivy Park line, Adidas could be facing a serious financial decline in the future.
Sources: The Wall Street Journal, Business Insider,
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