AceShowbiz - Often times, celebrities branching out into a new industry rely on their fame as artists. That, however, apparently did not work for Beyonce Knowles' Ivy Park in recent years. The singer's fashion brand, launched in 2016 in collaboration with Adidas, reportedly has suffered major revenue loss.
According to Wall Street Journal, Ivy Park is struggling as a result of "weak sales" in the past year. Documents shown to the outlet reveal that the brand's sales have dropped by more than 50% to only about $40 million in 2022.
The report notes that Adidas had projected Ivy Park's sales to total around $250 million last year. But the sales fell short of the projections, leaving a "$200 million hole in the company's annual projections."
Beyonce reportedly still gets about $20 million in annual compensation from the deal, while documents show that the brand has been losing money for the German company. With the contract between the "Cuff It" singer and Adidas expiring after 2023, the company reportedly has discussed ending or revamping the deal.
Despite report of the alleged major revenue loss, a rep for Adidas asserted that their partnership with Ivy Park is "strong and successful." The rep said in a statement to Fast Company, "As part of our valued strategic partnership with Ivy Park, we continue to be inspired by our collective vision and are proud of the work we have created together."
Beyonce and Ivy Park are currently gearing up to release the PARK TRAIL collection on February 9, which the Grammy Award-winning singer described as her "favorite drop to date" in a recent post shared on Instagram.
The report of Ivy Park "weak sales" comes on the heels of Adidas' split with Kanye West last year following his anti-Semitic remarks. Since parting ways with the rapper, the company hasn't found any big tranches of sales to replace the estimated $2 billion in sales generated by Ye's Yeezy line.