Adidas has warned it might face an working lack of as much as €700mn this 12 months after its ill-fated tie-up with Kanye West left the group with unsold Yeezy sneakers, sending shares within the sportswear maker sliding on Friday.

The German group issued its fourth revenue warning since July on Thursday after markets had closed, laying out a worst-case situation wherein it must write off all of the remaining stock.

The tie-up with West had proved extremely worthwhile for Adidas however the firm ditched it in October after the rapper and dressmaker precipitated a global outcry with antisemitic remarks.

In his first public feedback since taking on as chief government final month, Bjørn Gulden mentioned the corporate wanted time to “put the items again collectively”.

“The numbers converse for themselves. We’re at present not performing the way in which we must always,” mentioned Gulden, who joined from Adidas’s native rival Puma after his predecessor Kasper Rørsted was ousted over a collection of revenue warnings final summer season.

Adidas mentioned late on Thursday that it was prone to lose about €1.2bn in annual gross sales and €500mn in working revenue this 12 months following the choice to sever ties with West. An inside evaluation into what to do with unsold Yeezy equipment was ongoing, the group mentioned.

Citi analysts known as the revenue warning “materials” and akin to a “reset”.

Shares in Adidas fell as a lot as 10 per cent in early buying and selling on Friday.

The group has been hit not simply by the Yeezy debacle but in addition by its choice to give up Russia and its travails within the Chinese language market.

Gulden mentioned “2023 can be a 12 months of transition to set the bottom to once more be a rising and worthwhile firm”, including that he wished to “enhance our product engine, higher serve our distribution and guarantee that Adidas is a good and enjoyable place to work”.

Primarily based on unaudited numbers, gross sales in 2022 rose 1 per cent adjusted for foreign money swings to €22.5bn, about €300mn under analysts’ expectations, in accordance with a consensus survey printed by the corporate. Working revenue fell by two-thirds to €669mn.

Adidas will report detailed outcomes for final 12 months on March 8.