Photo: CHRISTOF STACHE / Getty Images
After four years of association, the sportswear brand Adidas and the American singer Beyoncé will end their agreement. After sales last year with the Ivy Park clothing line fell to $40 million, well below the German company’s $250 million projections.
According to reports in 2021, sales for Ivy Park were $93 million. Although neither party has ruled so far, it is presumed that the association had a completion date for this year.
The clothing line launched by the singer in 2016 and which is a combination of her daughter’s name, Ivy Blue, and the Houston neighborhood where she grew up, Parkwood, It went on sale in Adidas stores in 2020, with item prices ranging from $25 to $250.
Now that the parties have separated, it is clear that the rights to the brand will continue to be held by the artist. For the analyst Morningstar Research, David Schwartz the end of this agreement will not affect Beyoncé, since the clothing line “not a significant revenue generator” and it will not affect the sales of Adidas either.
Beyoncé would not be the only one to end the contract with the German company, last year rapper Kanye West also broke ties with Adidas, among other things because the artist had made anti-Semitic comments on a social network.
For that reason, Adidas stopped selling the Yeezy line of shoes, the company announced that it expects to lose about $1.3 billion in sales after the split.
For his part, the CEO of Adidas, Björn Gulden, pointed out that “the numbers speak for themselves, we are currently not performing as we should. 2023 will be a year of transition to lay the foundations to return to being a growing and profitable companywe have to put the pieces back together, but I am sure that in time we will make Adidas shine again and we need some time,” he said.
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