Adidas expects to lose $1.3 billion in revenue due to ending its partnership with the rapper formerly known as Kanye West.
The company cut ties with Ye in 2022 after the rapper made numerous antisemitic remarks.
It's still unclear what the German apparel company will do with the existing Yeezy products. However, it says if they are not repurposed Adidas' operating profits could be lowered by an additional $500 million this year.
“The numbers speak for themselves. We are currently not performing the way we should”, said Adidas CEO Bjørn Gulden. “2023 will be a year of transition to set the base to again be a growing and profitable company."
Adidas had a moderately successful 2022. The company reports that revenues increased by 1% in currency-neutral terms.
"We need to put the pieces back together again, but I am convinced that over time we will make adidas shine again. But we need some time," Gulden said.
News of the drop in revenue sent Adidas stocks tumbling on Friday. It was down by more than 1% before the market closed.