Adidas' choice to end its joint venture with Kanye West last year has had a detrimental effect on the company's business operations to this day.

The sportswear company said today that it is still considering how it would use its current Yeezy inventory in its revenue projections for 2023.

One of the possibilities involves the company's present Yeezy stock not being repurposed, which would result in a write-off and lower operating profit by an extra €500 million (about $537 million) this year. Revenues this year would be reduced by around €1.2 billion (about $1.29 billion) as a result of the decision not to reuse Yeezy items.

Additionally, the company said that it anticipates an unrelated one-time expense of €200 million (about $215 million) for a strategy review intended to increase 2024 profitability.

“The numbers speak for themselves. We are currently not performing the way we should… We need to put the pieces back together again, but I am convinced that over time we will make adidas shine again,” Adidas CEO, Bjørn Gulden, said in the press release.

When Adidas' CFO Harm Ohlmeyer stated during the Q3 2022 earnings call that the company owns the rights to all Yeezy designs and intends to use them as early as this year—a move that is reportedly still under consideration—the discussion on how it plans to use its current Yeezy stock got underway in November.

In October, Adidas announced that it was ending its relationship with rapper Kanye West after the latter openly criticized the brand and made antisemitic remarks on many media outlets. West inked a contract with Adidas in 2013, and the two years later, in 2016, they began a long-term collaboration that was initially scheduled to end in 2026.

Following reports that Beyoncé's Adidas Ivy Park apparel brand is losing almost $200 million in sales annually, Adidas has now released their 2023 financial prediction.