Adidas reports first net loss since 1992
CEO says year not good enough but better than he expected
North America sales expected to fall this year

HERZOGENAURACH, Germany, March 13 Reuters German sportswear giant Adidas posted its first annual loss in more than 30 years on Wednesday and warned sales in North America would fall again as sportswear retailers in the U.S. battle high inventories.

Adidas has been battling to right itself after it cut ties with Kanye West in October 2022, suspending sales of the highly profitable Yeezy sneaker line.

In CEO Bjorn Gulden39;s first year in the role, he resumed sales of Yeezy sneakers to clear remaining stock while seeking to boost popular products like Samba and Gazelle shoes, and improve relationships with retailers. Shares in Adidas have staged a recovery, outperforming Nike and Puma since he took over.

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

North America will continue to be weak, though, with Adidas expecting sales to fall by around 5 this year. Lower demand and high levels of inventory in the U.S. have weighed on sportswear and apparel companies, with brands discounting products in a bid to clear stock.

Adidas said sales in North America fell by 21 in the fourth quarter and by 16 over the year. Shares in Adidas were down 1 by 0930 GMT.

Overall, Adidas said it expects its underlying business excluding Yeezy to improve in 2024, with…