Adidas takes $200 million hit from Beyoncé's 'Ivy Park' line
Yahoo Finance Live anchors discuss reports that Adidas is taking a $200 million hit from Beyoncé’s ‘Ivy Park’ line.
JULIE HYMAN: And sticking--
BRIAN SOZZI: Depressing.
JULIE HYMAN: --with clothing, Adidas is reportedly taking a hit--
BRIAN SOZZI: Awful.
JULIE HYMAN: --from its partnership with Beyoncé. The apparel brand is taking a $200 million hit to its annual projections from its Ivy Park clothing line. This all according to the Wall Street Journal. I just went on the site. Apparently, the new collection is dropping tomorrow. So you can't even buy this stuff on the website right now because it's-- they're waiting for the next collection. But it's interesting. She's still getting paid, according to the Journal. I think $20 million is the payout from this. But it is interesting, given other partnerships and what we've seen. Maybe she's putting less into it, right, than some of the other partnerships.
BRIAN SOZZI: Maybe this is on Adidas. This company is a hot mess. Look how they handled the Kanye West drama, new CEO coming in here. And I would encourage new CEO to take a page out of Bill Ready over at Pinterest. Create-- constraint breeds creativity. There's probably too many people on an account like this, all flipping a lot of paper on, hanging out on spreadsheets, and ultimately getting nothing done. How do you not have a win with this stuff?
BRAD SMITH: Well, the interesting thing, too, is-- and I haven't been to a Beyoncé concert since after this-- well, I went to one before this partnership took place. But you would think that this is a partnership that would be plastered all over that concert experience--
BRIAN SOZZI: It's not.
BRAD SMITH: --too. It is not. It is not at all.
JULIE HYMAN: Well, maybe there are constraints on them--
BRAD SMITH: There could be constraints.
JULIE HYMAN: --being able to do that.
BRAD SMITH: Right. And to be able to sell merch there.
BRIAN SOZZI: --from Beyoncé. She's amazing, and which speaks to, I think, the broader problem with Adidas, again, which is a hot mess.
JULIE HYMAN: Yeah, maybe so, although, again, we don't know what she's putting into it either. I don't know. I feel like I need more information on this one.
BRIAN SOZZI: I don't. I'm blaming it on Adidas.
JULIE HYMAN: OK.
BRAD SMITH: The anecdote
JULIE HYMAN: That's weird-- Sozz jumping to conclusions.
BRIAN SOZZI: [LAUGHS]
JULIE HYMAN: Woo.
BRIAN SOZZI: Ho, ho, ho.
JULIE HYMAN: All right.