{"id":2835,"date":"2023-06-07T16:31:01","date_gmt":"2023-06-07T16:31:01","guid":{"rendered":"https:\/\/dailynewsintime.net\/?p=2835"},"modified":"2023-06-07T16:31:01","modified_gmt":"2023-06-07T16:31:01","slug":"go-woke-go-broke-adidas-forced-to-cut-woke-stars-clothing-line-after-massive-losses","status":"publish","type":"post","link":"https:\/\/dailynewsintime.net\/index.php\/2023\/06\/07\/go-woke-go-broke-adidas-forced-to-cut-woke-stars-clothing-line-after-massive-losses\/","title":{"rendered":"Go Woke, Go Broke: Adidas Forced to Cut Woke Star\u2019s Clothing Line after Massive Losses"},"content":{"rendered":"

Recent reports indicate that Adidas and Beyonc\u00e9 have agreed to part ways after the superstar\u2019s Ivy Park activewear line fell short of annual sales expectations by more than $200 million.\u00a0 The Hollywood Reporter\u00a0discussed<\/a>\u00a0the business development, saying \u201cA source close to the situation tells The Hollywood Reporter that the Grammy-winning entrepreneur and the German lifestyle brand have mutually agreed to part ways.\u201d<\/em><\/p>\n

Since the partnership with Adidas in 2018 and the subsequent relaunch of the activewear brand, Ivy Park has been underperforming its financial targets.\u00a0 In February, the Wall Street Journal reported:<\/p>\n

Beyonc\u00e9\u2019s fashion partnership with\u00a0Adidas AG\u00a0decrease; red down pointing triangle\u00a0has produced weak sales of her Ivy Park clothing brand, according to documents and people familiar with the matter, leaving a roughly $200 million hole in the company\u2019s\u00a0annual projections.\u00a0<\/em><\/p>\n

Sales of Ivy Park tumbled by more than 50% to about $40 million in 2022\u2014coming in below internal Adidas projections for $250 million in sales that year, documents reviewed by The Wall Street Journal show. The documents show Ivy Park has been losing money for Adidas and Beyonc\u00e9 gets about $20 million in annual compensation.<\/em><\/p>\n

The contract between the pop star, whose full name is Beyonc\u00e9 Knowles-Carter, and the German sneaker giant is set to end after 2023, and Adidas executives have discussed either ending or revamping the arrangement, the people said.\u00a0<\/em><\/p><\/blockquote>\n

\u201cThe company sought to diversify its portfolio with women and hoped to replicate the success that it had with Mr. West,\u201d\u00a0 the Wall Street Journal\u00a0reported<\/a>, \u201cAdidas executives expected hundreds of millions of dollars in Ivy Park sales and promised Beyonc\u00e9 guaranteed annual fees and creative control \u2014 but it soon became clear that Ivy Park collections weren\u2019t gaining the traction that Yeezy products did.\u201d<\/p>\n

According to\u00a0Fox News<\/a>, Ivy Park sales were on track to hit about $40 million at the end of last year, down from $93 million in 2021. For 2023, Ivy Park sales were projected to reach $65 million, compared with an earlier Adidas target of reaching $335 million.<\/p>\n

That stands in stark contrast to the huge success Adidas had with Kanye\u2019s \u201cYeezy\u201d clothing line, which the company cut after he made high-profile, anti-semitic comments. Fox Business, reporting on that decision,\u00a0said<\/a>:<\/p>\n

Adidas, a global sportswear seller with a roughly $30 billion market capitalization, lowered its earnings outlook in November after it cut ties with Ye following antisemitic comments by the rapper and workplace complaints involving him. Adidas had worked with Ye for years to build the Yeezy brand into one of its biggest sellers.<\/em><\/p><\/blockquote>\n

The Root, discussing why the brand might have failed,\u00a0said<\/a>:<\/p>\n

Ivy Park never quite felt like it matched her public persona. The girl from Houston might be all about stylish tracksuits and sneakers, but Beyonc\u00e9, the global megastar, doesn\u2019t put out that vibe. From a fan perspective, you trust brands when they align with someone\u2019s area of expertise. It\u2019s why athletes sell sneakers and chefs sell cookware and food products.\u00a0Rihanna<\/a><\/em><\/p>\n

\u00a0became famous for the sex appeal of her music, which is why\u00a0Savage x Fenty<\/a>\u00a0and Fenty Beauty make\u00a0perfect sense.<\/em><\/p><\/blockquote>\n

Notice: This article may contain commentary that reflects the author\u2019s opinion.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Recent reports indicate that Adidas and Beyonc\u00e9 have agreed to part ways after the superstar\u2019s Ivy Park activewear line fell short of annual sales expectations by more than $200 million.\u00a0 The Hollywood Reporter\u00a0discussed\u00a0the business development, saying \u201cA source close to the situation tells The Hollywood Reporter that the Grammy-winning entrepreneur and the German lifestyle brand […]<\/p>\n","protected":false},"author":1,"featured_media":2836,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-2835","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-daily-news"},"_links":{"self":[{"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/posts\/2835"}],"collection":[{"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/comments?post=2835"}],"version-history":[{"count":1,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/posts\/2835\/revisions"}],"predecessor-version":[{"id":2837,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/posts\/2835\/revisions\/2837"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/media\/2836"}],"wp:attachment":[{"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/media?parent=2835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/categories?post=2835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailynewsintime.net\/index.php\/wp-json\/wp\/v2\/tags?post=2835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}