Adidas AG and pop star Beyoncé have reportedly ended their partnership following disappointing sales, just as the German sportswear maker struggles with the fallout of the collapse of its Yeezy shoe alliance.
The unprofitable partnership is set to end later this year after another round of merchandise from the Ivy Park line hits market, the Wall Street Journal reported, citing people familiar with the matter.
The company didn’t immediately respond to requests for comment. The Hollywood Reporter earlier said that the two sides were breaking up.
Adidas CEO Bjorn Gulden is looking to turn around the struggling brand after joining the company in January. The German apparel maker is already dealing with the fallout of its canceled Yeezy partnership after cutting ties the musician and designer Ye following his string of antisemitic statements.
Adidas partnered with Beyoncé in 2019 to develop products for the Ivy Park brand, which the pop star owns and had launched a few years earlier.
The first products from the “adidas x IVY PARK” collection hit market in January 2020, right as the pandemic was taking hold of the world. Since then, the collaboration has produced sales figures that were well below Adidas’s expectations, the WSJ reported. Revenue fell by more than half to $40 million in 2022, while the company had targeted $250 million for that year, according to the newspaper.
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Earlier this month, Gulden said it’s been difficult for musicians to grow their fashion brands in the Covid era, due to frequent lockdowns as well as canceled tours and festivals. Gulden said it should be easier to market these products now.
Beyoncé on Friday introduced a separate collection in a partnership with French fashion house Balmain.
Adidas shares were roughly flat at midday Tuesday in Frankfurt trading.
