Nuremberg, Germany – Adidas, Europe's largest sporting goods manufacturer, admitted it will take at least a year for the company to fully recover from its very messy breakup with rapper and designer Kanye West.

Adidas lost its luster after ending what was a close and lucrative association with Ye following his string of public antisemitic outbursts that led the company, and many others, to cut all ties with him.

The Yeezy brand – the fashion and sneaker collaboration between the two – contributed over $1.2 billion turnover and nearly $527 million to profits in 2022.

Figures released by the company on Wednesday confirmed expected tough losses from terminating the relationship.

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For the year, profit from continuing operations slumped from just under $1.5 billion to around $267 million, as the crisis surrounding Ye compounded problems related to high inflation and Covid lockdowns in China.

Adidas reported a fourth-quarter net loss of more than $500 million, including one-off hits of around $52 million, mainly related to restructuring costs.

In 2023, Adidas expects currency-neutral revenues to decline at a high single-digit rate, expecting to report an operating loss of $738 million, should the sale of Yeezy products be completely lost.

The figure takes into account about $528 million in costs from a potential Yeezy inventory write-off, and more than $211 million in one-off costs. The German-based company may be forced to burn the Yeezy-branded shoes, analysts say.

Adidas plans to cut its 2022 dividend to $0.74 per share from $3.48 a year ago.

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New Adidas boss Björn Gulden, who switched from rival Puma at the start of the year, said in a statement on Wednesday that "2023 will be a transition year to build the base for 2024 and 2025."

"We need to reduce inventories and lower discounts. We can then start to build a profitable business again in 2024," he added.