Adidas warned of its first Annual Loss in three decades and slashed its dividend after the costly termination of its partnership with Kanye West's Yeezy brand in October. The company reported a fourth-quarter loss and slashed its dividend after the costly termination of its partnership with Yeezy which was due to the rapper's antisemitic comments. Adidas is projecting a full-year operating loss of 700 million euros in 2023, marking its first annual loss for 31 years. The estimate includes a hit of 500 million euros in potential Yeezy inventory write-off and 200 million euros in “one-off costs.” Adidas is looking to reduce inventories and reduce discounts in order to return to profitability in 2024.

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