Adidas warns of 2024 sales decline in overstocked North America market

German sportswear giant Adidas said on Wednesday it expects a decline in its sales in North America this year, blaming a still overstocked market there, as the company continues to sell off the sneakers from its axed Yeezy line.

Currency-neutral sales in North America are expected to decline at a mid-single-digit rate in 2024, with growth forecast in all other regions, Adidas said, announcing its final full-year results.

Adidas reported preliminary results for the year in late January and delivered a 2024 forecast far below analysts’ expectations, as profits dwindle from a sell-off in its discontinued sneaker line with Kanye West.

“Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year,” CEO Bjorn Gulden said.

The German retailer said its board would propose a dividend of 0.70 euros ($0.7650) per share, unchanged from last year, despite a difficult 2023 during which the company posted a net loss from continuing operations of 58 million euros.