After the Exit of Kanye West, Adidas Left with $2 billion Dollar Gap Despite Making $40 Million in Sales with Beyonce’s Deal

After the Exit of Kanye West, Adidas Left with $2 billion Dollar Gap Despite Making $40 Million in Sales with Beyonce’s Deal

Ending the deal with Kanye West is costing Adidas big time. The rapper proved to be an exception when he became the first non-sports artist to successfully collaborate with a sports brand and earn big. Their collaboration first came into being in 2013, and by 2019, they already crossed $1 billion in sales annually.

The Yeezy Adidas collaboration became a range, with people standing outside the stores to grab their pair of sneakers. After enjoying a long partnership, their deal came to an end due to major differences. The brand then announced its collaboration with megastar Beyonce. While it has been profiting, the gap left by Ye’s exit is too big to fill.

Adidas struggles after Kanye West despite collaboration with Beyonce

Collaborations are an important aspect of sales for brands. While celebrities can cost brands millions, they also help generate even billions in annual sales revenue. As per Business Insider, the German brand collaborated with Beyonce in April 2019. The collaboration is named Ivy Park and is set to expire in 2023. But it has seen a cut of 50% in sales of about $40 million. While the amount may seem big, it is nowhere near the predicted amount of $250 million. It is much lesser than compared to their Yeezy profit, which made them $2 billion. Although a representative told Insider that their collaboration with Beyonce has been doing strong and well so far.

The spokesperson, however, refused to reveal the exact sales value gained from their new deal. Meanwhile, internal changes in the company are also in effect. Adidas welcomed its newest CEO, Bjørn Gulden, in January this year, after seeing his successful work with Puma. Additionally, the sports company will also be launching its next big clothing line to appeal to Gen Z.

ALSO READAn Adidas Rebound! Multi-Billion Dollar Brand Goes Out Looking for Replacement Collection After Notorious Kanye West Breakup

Adidas tried to turn a blind to Ye’s comments but was left with no option when his anti-Semitism invited heavy criticism. Thereafter, reports of his misbehavior with their staff and other issues began surfacing. The brand wanted to stick to its principles and decided to let go of the Donda singer despite heavy profit. It will be seen how the sports brand closes the money gap now.

Do you think Adidas’ collaboration with Beyonce is enough to make up for the gap Ye has left? Comment your thoughts.

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