Adidas, the German sportswear giant, is reportedly expected to incur a loss of $10 million in 2022 on its partnership with Ivy Park, the sought-after activewear brand led by global music and entertainment icon Beyonce Knowles, as reported by Forbes.
Despite Beyonce receiving her customary $20 million compensation from Adidas, which has been in place since the partnership began in 2017, Ivy Park failed to achieve its sales projections, generating only $40 million in sales in 2022 compared to $93 million in the previous year.
Since its launch in October 2014 by Beyonce, Ivy Park has solidified its position as a formidable player in the activewear industry.
Thanks to its fruitful collaboration with Adidas, the brand has released several joint collections that have received widespread recognition and acclaim.
According to financial experts, the Ivy Park and Adidas partnership is projected to surpass all of Adidas’ previous collaborations in terms of sales and popularity, cementing its position as one of the leading activewear brands in the market.
However, in recent years, Ivy Park has encountered challenges in meeting its sales targets in the market.
Despite Adidas projecting $250 million in sales for Ivy Park in 2022, the brand only managed to achieve approximately $40 million in sales.
Nonetheless, with the release of a new Ivy Park collection this year, Adidas has revised its sales projection for the brand to $63 million, down from an earlier projection of $335 million for the year.
Beyonce’s success extends beyond her music empire and encompasses successful fashion ventures, notably her activewear brand, Ivy Park, which constitutes a considerable portion of her impressive $450 million net worth.
However, the partnership between Ivy Park and Adidas is scheduled to conclude after 2023.
As a result, Adidas executives have contemplated revamping the line or terminating the agreement, which could jeopardize Beyonce’s $450-million fortune.
