Beyonce and Adidas are breaking up after a multiyear partnership centered around her athleisure brand Ivy Park failed to live up to expectations.
The two parties came together in 2018 to relaunch the brand, but creative differences and disappointing sales led to the mutual decision to move on, according to reports.
Specifically, Beyoncé wants to “reclaim her brand, chart her own path and maintain creative freedom,” per the Hollywood Reporter.
Addidas launched its first Ivy park collection in 2019 with great fanfare, including a marketing campaign that saw giant orange boxes of the product shipped to celebrities including Kendall Jenner, Cardi B, Reese Witherspoon, Ciara and more.
Despite hopes that Ivy park would be comparable to Ye’s Yeezy brand, Ivy Park releases undersold expectations. About half of the merchandise from five of six Ivy Park launches remains on shelves, according to reports.
At the end of 2022, analysts projected Ivy park would reach $40 million in sales, compared to $93 million in 2021.
Possibly adding to the tension was the fact that Adidas was set to lose $10 million or more in 2022 on Ivy Park, while Beyonce would receive $20 million in compensation.
Adidas granted the superstar guaranteed annual fees and creative control, but the German apparel maker began to push for more control over branding, according to a Wall Street Journal report.
Shares of Adidas fell 0.9% to $75.67 Friday morning in New York.
Before teaming up with Adidas, Beyonce launched Ivy park in 2016 with Top Shop owner Philip Green. That partnership ended in 2018, at which point Beyonce’s company Parkwood Entertainment took on full ownership.
Where Ivy Park goes from here is unclear, but Beyonce herself is gearing up for her Renaissance World Tour, which begins in May.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel