Yahoo Finance Adidas, Beyoncé to end partnership amid flagging Ivy Park sales - reports
By Scott Kanowsky
Investing.com -- Adidas AG (ETR:ADSGN) and Beyoncé have decided to part ways, media reports said on Tuesday, ending a multi-year relationship to sell the music superstar's Ivy Park line of fashion merchandise.
The partnership will expire after the German sportswear brand releases Ivy Park products that were already due to be released this year, the Wall Street Journal reported, citing people familiar with the situation.
In 2019, Adidas signed a deal with Beyoncé in the hopes that Ivy Park would help boost its offerings to female customers and duplicate the spur in demand created by a similar - but now defunct - partnership with rapper Ye.
The WSJ previously said that the contract between Adidas (OTC:ADDYY) and Beyoncé was set to expire at the end of 2023, with Adidas executives mulling over whether to renew or overhaul the agreement.
Sales of Ivy Park tumbled by over 50% to about $40 million last year, according to internal sources and documents seen by the WSJ, which added that Adidas had projected that Ivy Park would create $250M in annual sales. The documents also showed that Adidas stood to lose at least $10M on the agreement in 2022, while Beyoncé's yearly compensation came in at about $20M.
Meanwhile, "major creative differences" have also arisen between company and the singer, whose full name is Beyoncé Knowles-Carter, The Hollywood Reporter said.
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