BERLIN: Adidas shares slumped as much as 11% on Friday after the sportswear maker warned the fallout from its split with Kanye West could wipe out operating profits this year, its fourth profit warning in less than six months.

The German group, which in October ended its partnership with the rapper and fashion designer now known as Ye after he made antisemitic remarks, said late Thursday that not selling the remaining stock from his Yeezy brand could reduce revenue by around 1.2 billion euros ($1.3 billion) in 2023 and operating profit by about 500 million euros to around break-even.

It forecast a high single-digit percentage decline in sales this year. Analysts had on average had expected a 4% rise in 2023 revenue on a currency-neutral basis and operating profit of 1.02 billion euros, according to figures on Adidas' website.

Shares in Adidas were 9.% lower at 0830 GMT.

"While the company continues to review future options for the utilisation of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock," it said in a statement.

Adidas also said writing off the Yeezy inventory altogether - rather than, for example, repurposing it - could lead to an additional 500 million euro drop in 2023 operating profit, and there could be a further one-off hit of 200 million euros as part of a review to return to profitable growth in 2024.

That amounted to a worst-case scenario of a 700 million euro loss this year, the group warned.

Baader Helvea described the guidance as "horrible" and very disappointing.

The news came as Adidas missed its own forecasts with a rise of just 1% in 2022 revenue in currency-neutral terms.

Jefferies cut its recommendation on Adidas stock to "hold" from "buy", citing "challenges in articulating the mid-term profit delivery".

Adidas had lowered its 2022 forecasts in October to mid-single digit percentage revenue growth and a 4% operating margin in light of weaker demand in China and Western markets and one-off expenses related to exiting Russia.

But Thursday's results showed the company had fared worse than it expected, yielding an operating margin of 3%.

It will report full 2022 results on March 8.

($1 = 0.9307 euros)