The brand's sales more than halved in 2022.
German sports giant adidas may refuse to continue developing the Ivy Park brand, created in partnership with Beyoncé. The fashion label is not doing as well as Beyonce on stage.
News outlets are reporting that adidas is losing money from the partnership. In 2021, sales of the Ivy Park division reached $93 million, and in 2022 fell to $40 against a forecast of $250 million. In 2023, the brand's sales will presumably be $65, although it was initially expected to reach the $335 mark.
Given the weak performance, experts suggest that adidas may abandon the partnership after 2023 when the first contract expires. The management of the German concern is currently discussing various scenarios regarding the prospects of the partnership.
Brands in the adidas portfolio created in collaboration with celebrities traditionally bring significant revenues. Last year, the company was forced to abandon its partnership with Kanye West and his Yeezy brand. As for Ivy Park, things were not going so flawlessly from the outset and the parties had repeated disagreements over the promotion of the brand. So should adidas ultimately not renew the contract for 2024, that would be to be expected.