They are not being easy months for Adidas. The German sports brand is seeing how its company loses millions of dollars after the decisions made in recent months. First, the forced departure of Kanye West and his Yeezy line and, now, the announcement that the commercial agreement with Beyoncé is not going to be extended after its poor financial results. Two very different exits in terms of motives, but that damage the prestige of the company as they are its main claims to the public.
Beyoncé’s sportswear line, called ivy park, It was born in 2014 when the artist associated with the British businessman Philip Green, owner of brands such as TopShop, which has practically disappeared. Four years later, the Texan acquired the part of the businessman after he was involved in accusations of sexual harassment and racism. That was when the artist teamed up with Adidas, with whom she relaunched the sports line and developed new ideas and garments for the brand, which was designed for both men and women.
After five years of union and after great creative differences between the two, Adidas and Beyoncé have decided, by mutual agreement, to break the contract and separate their paths, as reported exclusively The Hollywood Reporter. The winner of 32 Grammy Awards wants, in any case, to relaunch the brand and maintain her creative freedom, which seems to have been lost during their years together.
Ivy Park entered only 40 million dollars (about 37 million euros) last year, according to data from the economic newspaper The Wall Street Journal, figures that are very far from what Adidas expected and that they were assuming losses, since “approximately half of the merchandise that was produced was not sold,” says this medium. For this current financial year, the company would have expected those figures to be about $335 million. The contract will expire at the end of the year, even though he released his latest collection in January, which featured bold, bright and camouflage colored pieces for kids, men and women. With more than 300 million followers on her Instagram profile, this time and exceptionally the singer and businesswoman has not uploaded any image of this latest collection to her networks.
Although in the case of Beyoncé, her departure is due to the poor results of her collections, just five months ago the company had to face the forced departure of Kanye West. Adidas abruptly cut the contract after the racist and anti-Semitic comments that the famous rapper pronounced in public and on his social networks last October. Yeezy, the collaboration they had in common, went from being the engine of growth and revenue for the brand to being a headache.
Yeezy was Adidas’ most profitable line, despite its high prices. The products were around between 200 and 400 euros, and were sold without the need for discounts. The company calculates that it could lose up to 700 million dollars if it is not able to release the stock accumulated from the collaboration. Despite the initial rejection and immediate removal of his collection by the company, that initial cancellation seems to be fading away. In the second-hand markets, the prices of the collection have skyrocketed, reaching up to 600 euros for a pair of sneakers.