Beyoncé’s Ivy Park Label Is Costing adidas Millions

Back in 2019, one of the hottest stories floating around the sneakersphere was Beyoncé signing a major deal with adidas. It was said to be a multi-layered partnership, with Bey herself saying, ‘This is a partnership of a lifetime’. Four years on and multiple collections later, it seems the ongoing Ivy Park collaboration hasn’t been as profitable as initially thought.

A Wall Street Journal report has indicated that Ivy Park has produced weak sales, leaving adidas in the hole for around $200 million. In 2022, sales allegedly fell 50 per cent to about $40 million – much lower than the projected $250 million and a decrease from 2021’s sales, which sat at the $93 million mark. The report also cites that ’in five of the last six Ivy Park releases, roughly half of the merchandise that was produced went unsold’. Despite the significant decrease in sales, Queen Bey has continued to receive $20 million annually in compensation for co-signing the collection.

Over the past few years, Team Trefoil have looked to capitalise on major celebrity partnerships, with musical artists like Pharrell attempting to recreate the Yeezy run of success. This news comes after an announcement that adidas could take a $1.29 billion hit due to unsold Yeezy stock following the termination of their partnership with Ye.

The Beyoncé x adidas Ivy Park label is already set to end this year, and concrete plans haven’t been put into place, but Team Trefoil will either end or revamp the partnership. The projected earnings for 2023 are currently $93 million, far off the original $335 million target. The latest collection has been revealed in Dubai, but only time will tell what will come of Ivy Park.