Adidas said on Thursday its revenue grew by 1 percent in currency-neutral terms in 2022, lagging its forecasts, and flagged that it expects a high single-digit decline in sales in 2023.

The sporting goods maker said not selling its existing Yeezy stock could reduce revenue by around 1.2 billion euros ($1.29 billion) in 2023 and operating profit by around 500 million.

Writing off the inventory altogether would lead to an additional 500 million euro drop in operating profit, it said, along with one-off costs in 2023 of up to 200 million euros as part of a review to return to profitable growth in 2024.

“Against this background, Adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023,” it said in its statement.

By Victoria Waldersee; Editing by Susan Fenton

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