Beyoncé’s IVY PARK Label is Costing adidas $200 Million
Touted as the biggest footwear signing since Kanye and adidas in 2015, Beyoncé and her IVY PARK deal with adidas promised big things — Bey herself saying that the communion was a ‘partnership of a lifetime.’
But four years on, the IVY PARK and adidas co-sign is on thin ice.
After several collections, the partnership hasn’t been as profitable as initially thought, leaving adidas $200 million short of where they’d hoped to have been.
A Wall Street Journal report shows that sales allegedly fell 50 percent to about $40 million in 2022 — significantly lower than the projected $250 million. The report also cites that ’in five of the last six IVY PARK releases, roughly half of the merchandise that was produced went unsold.
The projected earnings for 2023 are currently $93 million, far off the original $335 million target.
Despite the significant decrease in sales, Beyoncé has continued to pocket $20 million annually in compensation for co-signing the collection.
This news comes after an announcement that adidas could take a $1.29 billion hit due to unsold YEEZY Brand stock following the immediate termination of their partnership with Kanye West.
The Beyoncé x adidas IVY PARK label is currently scheduled to come to a close this year, with adidas optioned to end or renew the contract.