Beyoncé's clothing line causes revenue loss for Adidas
While the 'Beyhive' are fighting for tickets to the Renaissance Tour, Beyoncé's clothing line is suffering.
Adidas had a tough 2022 and start to 2023.
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The brand had a very successful partnership with Kanye West, known now only as Ye, up until the artist started being the centre of attention for all the wrong reasons, and fans of the brand called on them to end their ties with the artist, especially after he made anti-Semitic remarks. The brand quickly released a statement to announce that they have ended the partnership.
It was estimated that this would slash Adidas's net income in 2022 by "up to 250 million euros ($246 million)".
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Now, in a new Wall Street Journal report, it has revealed that even Queen B's athleisure brand, Ivy Park, which is also partnered with Adidas, is not helping their financial struggle.
Adidas had projected $250 million in revenue for 2022 but in reality, only made $40 million, which shows a drop in sales by 50%.
Beyoncé's IVY PARK @adidas line dropped 50% in sales last year. 📉
— aGOODoutfit (@aGOODoutfit) February 9, 2023
In the past five of the six seasons, almost half of the merchandise made was left unsold. 😬
Sales team projected the revenue to be around $250 million in 2022, but the line only made $40 million‼️ pic.twitter.com/zrCRA3nBVl
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According to Forbes, the brand dropped from $93 million in sales in 2021 to $40 million in 2022 and had to adjust its projection of $335 million in sales in 2023 to only $63 million.
The contract is set to expire after 2023 and there has been no news hinting at an extension just yet.
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Adidas has since commented on these reports saying:
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. As a matter of principle, we do not disclose key financial figures for individual product categories.
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Beyoncé has also posted on Instagram that her next Ivy Park drop will be her favourite yet:
She's still receiving $20 million in annual compensation through this partnership, so she's definitely not struggling financially just yet.
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