Adidas appears to be backing off its strategy of aligning its brand with entertainers.
The German sneaker giant and Beyoncé have mutually agreed to end their global business partnership for the singer’s Ivy Park lifestyle brand, according to The Hollywood Reporter.
The decision will end a collaboration between the Grammy-winning singer and German sneaker giant that began in 2019. It comes only weeks after The Wall Street Journal reported that revenue from Ivy Park plummeted 50% last year.
The brand’s sales tumbled to $40 million last year — well below a projected $250 million. Adidas pays Beyoncé about $20 million annually, according to the WSJ.
“There has apparently been major creative differences between Ivy Park and Adidas, and Beyoncé is excitedly looking to reclaim her brand, chart her own path, and maintain creative freedom,” according to The Hollywood Reporter exclusive.
When she signed the deal nearly four years ago, Beyoncé called it the “partnership of a lifetime.”
Meanwhile, Adidas is also stuck with $1.3 billion worth of Yeezy products after cutting ties with rapper Kanye West in 2022.
Adidas pulled West’s line from retail shelves after the rapper made antisemitic comments. The entertainer, who goes by the name Ye, originally signed with Adidas in 2013, then released his first signature sneaker in 2014.
Before falling apart over West’s antisemitic outbursts, the Yeezy deal was a big success, generating $1.7 billion — roughly 8% of Adidas sales in 2021.
