Beyoncé Splitting with Adidas after $200 Million Shortfall, Source Says
The perfectionist pop star’s brand Ivy Park apparently wasn’t going to meet Adidas’ projections.
Queen Bey has come up short — $200 million dollars short to be exact. Beyoncé is reportedly parting ways with Adidas over a $200 million shortfall with the brand’s projections. The singer launched Ivy Park in 2016, but after a not-so-successful relaunch with Adidas, she’s reportedly reconsidering her business options, and the two brands have decided to split.
A source for The Hollywood Reporter revealed that “major creative differences” between the brands forced the “Partition” singer to part ways with the sneaker and sportswear company after financial expectations fell hundreds of millions of dollars short this year.
The Wall Street Journal was quick to reveal the partnership’s loss of revenue back in February 2022. Documents assessed by the publication showed how sales of Ivy Park “tumbled by more than 50% to about $40 million in 2022,” well below the $250 million Adidas had originally projected.
The $200 million shortfall between Beyoncé and Adidas was enough for Grammy award-winning singer and the German lifestyle brand to part ways as of this month. The decision comes just a few months before her highly-anticipated Renaissance World Tour, which kicks off in May of 2023.
Previously, Beyoncé collaborated with Adidas to reinvent the Ivy Park activewear brand back in 2018. The partnership proved to be a challenging one however, and a source close to the singer revealed that “Beyoncé is excitedly looking to reclaim her brand, chart her own path and maintain creative freedom” as reported by The Hollywood Reporter.
Ivy Park’s loosened ties come on the heels of another singer-turned-entreprenuer brand dissolution. Adidas also broke off a longstanding deal with Kanye “Ye” West and his fashion company Yeezy, after the rapper’s controversial behavior and anti semitic remarks went public back in the fall of 2022.
“Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness,” Adidas announced in an official statement back in October. The brand’s decision to disassociate with West will cost him millions and ultimately reduce his net worth.
No word yet on how the decision to split with Adidas over the $200 million shortfall will affect Beyoncé’s net worth.