Adidas experienced a significant loss in the first quarter of the year, as its separation from rapper Kanye West resulted in a drag on the company's finances.

The German sportswear company incurred a net loss of 39 million euros ($43 million) from January to March, compared to a profit of 482 million euros in the same period last year.

Adidas suffered 400 million euros in lost earnings linked to the discontinuation of its successful Yeezy line, designed in collaboration with West, after he made anti-Semitic comments.

Bjorn Gulden, the company's new CEO, stated that 2023 would be a "transition year" and that the company's focus would not be on maximizing short-term financial outcomes.

The company also faced challenges in reviving its business in China, where it was hampered by lengthy Covid lockdowns, as well as a decline in sales in the US and China due to the discontinuation of the Yeezy line.