A new report says buyers are giving the boot to a line of shoes and other items Adidas is marketing in partnership with pop star Beyoncé.
The gap between expected sales and reality is about $200 million, according to The Wall Street Journal.
A January 2022 Adidas news release hailed the arrival of what was ballyhooed as “a new rule-breaking, trail-blazing expression of performance wear” from Adidas and Ivy Park, a company owned by Beyoncé.
One of the features promoted was that this line of shoes had “inclusive and gender-neutral sizing in fashion styles, performance gear, footwear and accessories.”
The Journal report, which cited “documents and people familiar with the matter,” said sales of Ivy Park items dropped by more than 50 percent in 2022.
In terms of dollars, sales were about $40 million, well below projections of $250 million, the Journal reported.
The newspaper reported that the Ivy Park line has been a money-loser for Adidas, but not for Beyoncé, who rakes in $20 million in the deal with Adidas.
The contract between the singer and sneaker giant ends at the end of the year, according to the Journal.
Executives at Adidas have talked about altering or scrapping the current deal, the Journal reported.
Adidas maintained that the Ivy Park “partnership is strong and successful,” according to the Journal.
“We continue to be inspired by our collective vision and are proud of the work we have created together,” the company said.
A representative of Beyoncé did not respond when the Journal sought comment.
Beyoncé’s next Ivy Park release goes on sale this week. As noted by the BBC, Beyoncé won a record-setting 32nd Grammy award at Sunday’s ceremony.
Beyoncé now has the most wins in Grammys history with 32. https://t.co/oNuhlMDqIL pic.twitter.com/SD55zyVSp6
— CNN (@CNN) February 6, 2023
Beyoncé for Ivy Park.? pic.twitter.com/vQxvo3w3WF
— Beyoncé Tour HQ (@BeyonceTourHQ) February 8, 2023
The Journal reported that Beyoncé does not appear bedecked in Adidas items when she appears in paparazzi pictures.
The report said Adidas and Beyoncé have had differences with the approach to market her Ivy Park products, with Adidas wanting its brand featured more prominently.
The report said that 2023 projections for Beyoncé’s line are at $65 million, down from the initial projections of $335 million.
The reported difficulties turning the glitter of Beyoncé into cash for Adidas come as the company had to lower its profit expectations after it ended its relationship with entertainer Kanye West, citing comments West made late last year.
Forbes estimates Beyoncé’s net worth at $450 million.
This article appeared originally on The Western Journal.
