By Cecilia Butini

Shares in German sportswear giant Adidas AG fell in early trading on Friday after the company warned that it could post a loss in 2023 if it fails to sell its inventory of Yeezy shoes, made within a partnership with rapper Kanye West that was recently terminated.

At 0806 GMT, shares traded 10% lower at EUR140.64.

Adidas said it expects sales to fall at a high single-digit rate in currency-neutral terms because of the significant adverse impact of not selling the existing stock of shoes. The potential operating loss would be 700 million euros ($752 million), Adidas said.

Analysts at Bryan Garnier say that even adjusted for these effects, 2023 would have been a transition year for Adidas, shy of consensus expectations. Chief Executive Bjorn Gulden said that the company isn't performing the way it should, and that it will take some time to steer it back to growth and profitability.

Write to Cecilia Butini at cecilia.butini@wsj.com

(END) Dow Jones Newswires

February 10, 2023 03:24 ET (08:24 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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