We’ve seen adidas land a slew of top influencers and IPs to collaborate with over the last decade-plus, however, it's evident that the German sportswear giant hasn’t had the massive success one would think when having the likes of Pharrell Williams and Beyoncé co-signing the brand. While up until this point we didn’t have financial documents or hard evidence aside from seeing releases sit or hit outlets, the Wall Street Journal has viewed documents detailing the struggles of Queen B’s IVY PARK line with adidas.
Beginning in 2016, IVY PARK initially was an activewear collection that partnered with retailer Topshop, though Beyoncé eventually purchased the brand entirely in 2018 and began her collaboration with adidas in 2019. For The Three Stripes, having one of the most influential women in the music and pop culture scene alongside the dominant Yeezy label seemed like the best strategy. Sales projections for the line were set at around $250 million by 2022 after the initial signing, though documents suggest that adidas is losing money on the line. This, coinciding with cutting ties with Yeezy may spell major financial hits in the near future.
Terms for the deal aren’t spelled out entirely, but we do know that Beyoncé receives around $20 million yearly in compensation and since 2022 the line began to shrink as IVY PARK only generated around $40 million compared to the $93 million in 2021. This year, The Three Stripes is projecting IVY PARK to earn around $65 million.
Taking a step back from financials, the marketing for the line has been a disaster as the two parties disagreed on strategies for marketing. Compared to Yeezy who utilized key celebrities, Ye himself, and his in-laws/ex-wife for showcasing products, it's rare to see Beyoncé rocking IVY PARK gear. This has led to around half of the inventory from five of the last six IVY PARK releases going unsold, leading many products to hit the outlets.
When speaking with the WSJ, an adidas spokesperson stated the IVY PARK “partnership is strong and successful,” continuing, “[we] are proud of the work we have created together.”
Beyoncé’s deal with adidas through her IVY PARK label is set to expire at the end of 2023, and with the struggles revealed, it’s very possible that the two cut ties once the contract comes to an end. We may also see a major revamping of the line throughout this year, though we’ll have to wait and see the strategy employed by The Three Stripes. For more updates regarding the latest news, releases, raffles, and more in the sneaker and streetwear world, keep it locked to our Twitter and the Sole Retriever mobile app.
Sneakerhead from South Florida who turned his passion into a career. Concerts, music, trying new restaurants, and catching the latest movies are some of the things I enjoy when not writing for Sole Retriever. Email: nick@soleretriever.com
