Adidas warned about the impact on its profits after it ended its Yeezy partnership with rapper and fashion designer Kanye West.
The firm's new boss said that it could lose hundreds of millions of dollars this year if it can't sell its stock of Yeezy sneakers.
The numbers speak for themselves. The company's chief executive, Bj rn Gulden, said in a statement that they are not performing the way they should.
Adidas said it was still deciding whether to scrap its remaining Yeezy stock or not, but it would take a €500 million $536 m; 443 m hit to its profits if it is all written off.
The company's operating profit for the last year fell to €669 m, two thirds less than in 2021, when it was revealed that it had fallen to €669 m.
In October, the company announced that it was ending the highly profitable partnership with West after he caused an outcry over his anti-Semitic comments.
The decision to end its partnership with Yeezy had a major negative effect on Adidas, but it has also faced other challenges over the last year.
At the beginning of this year, Gulden joined Adidas, after his predecessor was ousted in the wake of a series of profit warnings.
In March, the company announced that it would close its shops in Russia and suspend its online store there as it joined a raft of global brands that have pulled out of the country in the wake of the invasion of Ukraine.
The firm's business in China was impacted by Beijing's strict zero Covid measures that saw major cities in the country put into lock-down.
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