German sportswear giant adidas is putting the kibosh on the clothing line, which it launched in collaboration with Beyoncé in 2016.
The company saw its IVY PARK line sales fall by more than 50% in 2022 to $40 million, significantly less than the $250 million the company had previously projected. And in 2023, the line was projected to generate $65 million in revenue, a far cry from the company’s target of $335 million.
In addition, supporting the line cost the company $20 million annually, which it had to pay in contract fees to the Grammy Award-winning singer.
The decline in sales of the clothing line came, along with the losses arising from the fallout of the adidas-Yeezy partnership, which led the company to issue a profit warning to its investors as it sought to turn around its business and put the focus back on its core product offerings.
“adidas has all the ingredients to be successful, but we need to put our focus back on our core: product, consumers, retail partners, and athletes,” said adidas CEO Bjørn Gulden earlier this month.
Gulden’s indication that the company plans to focus on athletes and not entertainers follows its creative differences with Beyoncé. Last year, the company also decided to end its partnership with Ye following his anti-semitic rant, which slashed its annual earnings in half.
In February, adidas struck a $500 million deal with Yeezy to sell the remaining inventory.