Tickets for Beyonce’s upcoming Renaissance World Tour are selling out fast, but that isn’t quite true for her Ivy Park athleisure line with Adidas.
Sales from the collaboration are “weak” and left a “$200 million hole in the company’s annual projections,” according to a report from The Wall Street Journal.
The brand’s sales have reportedly dropped by more than 50% to about $40 million just last year. Adidas’ internal projections were allegedly for $250 million in sales that year.
Documents that were shown to the WSJ, show that the brand has been losing money for the German company. Beyonce gets about $20 million in annual compensation from the deal.
The contract between the “Cuff It” singer and Adidas may possibly end after 2023, the report states. However, execs with the iconic sportswear brand have talked about either revamping the collaboration or just ending it altogether.
Beyonce’s deal with Adidas came after the success of Kanye West’s deal with the brand.
Adidas cut ties with West in late 2022, following the rapper’s public antisemitic comments.
In 2016, Ivy Park was first debuted by Beyonce in a partnership with Phillip Green, the former owner of Topshop. The initial pieces consisted of basic activewear that ranged between $35 to $60 for tank tops, t-shirts, shorts, and hoodies. Higher-priced jackets and accessories were available as well.
In 2018, the record-breaking Grammy winner bought full ownership of the brand. A year later, she announced her collaboration with Adidas.
From the partnership, Ivy Park then offered unisex clothing items along with a wide size range between XXXS to XXXXL.
Ivy Park’s latest drop called dubbed Park Trail drops on Feb. 9.
