The Wall Street Journal: Beyoncé’s clothing line missing Adidas projections by $200 million, documents show
Beyoncé fans are clamoring for tickets to her world tour, but the music superstar is having a harder time finding buyers for her line of inclusive streetwear.
Beyoncé’s fashion partnership with Adidas AG
ADS,
+1.93%
has produced weak sales of her Ivy Park clothing brand, according to documents and people familiar with the matter, leaving a roughly $200 million hole in the company’s annual projections.
Sales of Ivy Park tumbled by more than 50% to about $40 million in 2022—coming in below internal Adidas projections for $250 million in sales that year, documents reviewed by The Wall Street Journal show. The documents show Ivy Park has been losing money for Adidas and Beyoncé gets about $20 million in annual compensation.
The contract between the pop star, whose full name is Beyoncé Knowles-Carter, and the German sneaker giant is set to end after 2023, and Adidas executives have discussed either ending or revamping the arrangement, the people said.
