Adidas made the announcement in a statement on Wednesday, adding that it could post its first full-year loss in 30 years this year. The company will also cut its dividend.

The gross margin decreased by 3.4 points, to 47.3 percent. This indicator measures a company’s profitability, generally gross profit as a percentage of sales.

Adidas proposes to pay a dividend of €0.70 per share for the last year. In the previous year, the dividend was 3.30 euros per share.

The company is still dealing with the fallout from ending its partnership with West, which produced the profitable Yeezy line of sneakers.

Since January 1, Bjorn Golden has headed the company, and according to him, Adidas should refocus on its core business. According to the director, the company is facing a transitional year before returning to profit in the following years.

Adidas said it was still deciding what to do with its inventory of unsold Yeezy shoes. Terminating the collaboration with rapper West cost the company 600 million euros (14.1 billion CZK) in sales in the fourth quarter, Yeezy shoes could have brought in an estimated $1.2 billion this year.

In addition to West, the company prematurely said goodbye to Kasper CEO Rorsted last year. According to the annual report, his departure from Adidas would cost approximately €16 million (379 million CZK).