The company attributes this to the end of the Yeezy partnership with Kanye West
Adidas has warned its split with Kanye West could push it to its first annual loss in three decades this year.
The sportswear giant ended its partnership to produce the Yeezy sneaker line with West last year.
That after the rapper and fashion designer made antisemitic remarks.
The split cost $632 million in sales in the fourth quarter.
While Yeezy shoes would have brought in an estimated $1.2 billion this year.
The impact of that saw Adidas slash its 2022 dividend.
It’s a challenging start for new CEO Bjorn Gulden.
He took charge of Adidas on January 1 and pledged to rebuild the brand.
Gulden said the company faced a ‘transition’ year before returning to profit in 2024.
Adidas has forecast underlying operating profit at roughly break-even this year.
China is expected to drive sales following the end of health crisis lockdowns, but that boost is likely to be wiped out by the impact of the Yeezy split.
Adidas shares fell as much as 3% after the announcement.
