Adidas has slashed its dividend after swinging to a quarterly working loss, as gross sales from China halved and unsold Yeezy coaching sneakers piled up following the model’s resolution to sever ties to rapper Kanye West.

The German sportswear group lower its full-year dividend 79 per cent to 70 cents from €3.30 final 12 months. Its fourth-quarter working loss got here to €724mn, though that was higher than analyst expectations of a lack of €782mn.

Adidas on Wednesday reiterated final month’s warning that it’d undergo an annual lack of as much as €700mn in 2023, which might be the primary in 31 years.

The Yeezy debacle, following the model’s resolution to chop its hyperlinks with the US rapper in October, will wipe out €1.2bn in annual income and will result in €500mn in losses ought to the model be unable to promote its remaining inventory of trainers.

General gross sales this 12 months are set to fall “at a excessive single-digit price” after rising 1 per cent final 12 months.

Adidas chief government Björn Gulden, who joined from rival Puma earlier this 12 months, on Wednesday promised to convey the corporate “again to be the perfect sports activities model on the earth as soon as once more”. He warned that it could take time because it first wanted to chop inventories and reductions. “2023 can be a transition 12 months to construct the bottom for 2024 and 2025.”