Beyoncé and Adidas AG have decided to end their fashion partnership, according to people familiar with the matter, splitting up after years of lackluster sales for her Ivy Park line of apparel.
The partnership will end after the company releases Ivy Park collections of merchandise that are already planned for this year, the people said. The Hollywood Reporter earlier reported that the two sides were breaking up.
The contract between the music star, whose full name is Beyoncé Knowles-Carter, and the German company was set to end after this year, and Adidas executives had held discussions about ending or revamping the arrangement, The Wall Street Journal reported in February.
Sales of the Ivy Park brand tumbled by more than 50% in 2022 and have underperformed Adidas’ internal projections, the Journal reported in February, citing documents and people familiar with the matter. The documents show Ivy Park has been losing money for Adidas, and Beyoncé gets about $20 million in annual compensation.
Meanwhile, Beyoncé is working with other fashion partners. On Friday, she unveiled a couture collection designed in collaboration with French luxury house Balmain. The collection featured looks inspired by her 2022 album “Renaissance.”
Beyoncé reached a deal with Adidas in 2019 after launching the Ivy Park brand in 2016. Adidas executives, hoping to re-create the success of their Yeezy partnership with Kanye West, expected Ivy Park to bring in hundreds of millions of dollars in sales and promised Beyoncé guaranteed annual fees and creative control.
Ivy Park features inclusive sizing and gender-neutral styles. However, much of the merchandise that was produced for the brand didn’t sell, the documents show. Sales were about $40 million in 2022, below internal Adidas projections for $250 million for that year and down from $93 million in 2021, according to the documents.
Adidas has to grapple with changes in other celebrity partnerships as well.
In October, the company cut ties with Mr. West, who goes by Ye, following antisemitic comments, erratic behavior and workplace complaints involving him. Adidas said earlier this month that it was still evaluating what to do with its unsold Yeezy inventory.
Pharrell Williams, a music producer who has collaborated with Adidas for nearly a decade, recently agreed to become creative director of menswear for Louis Vuitton.