Adidas‘s once high hopes for its Ivy Park partnership with Beyoncé appears to have soured with the German brand considering ending its relationship with the brand. According to WSJ, sales of Ivy Park in 2022 versus the prior year declined 50 percent to about $40 million versus internal Adidas projections of $250 million.
According to documents viewed by the publication, Beyoncé receives $20 million in annual compensation as part of the agreement. Reflecting a demand problem, documents also show in five of the last six Ivy Park releases, roughly half of the merchandise produced went unsold. For 2023, Ivy Park sales are projected to reach $65 million, compared with an earlier Adidas target of $335 million.
Beyoncé’s contract is said to come to an end in 2023 with Adidas executives mulling either renegotating or ending the partnership altogether.
When contacted by WSJ, Adidas responded that the Ivy Park “partnership is strong and successful” and declined to discuss its financial performance.
Adidas launched an Ivy Park collection today. The capsule featured 87 pieces, ranging in price from $30 for a beanie up to $600 for a puffer jacket.