Adidas CEO Kasper Rorsted to Step Down in 2023; Replacement Search Under Way

The departure of Chief Executive Officer Kasper Rorsted will force the search for a new leader as Adidas reels from years of boycotts in China.

According to a statement Monday, the Adidas board and Rorsted agreed that he would hand over the top job next year. Rorsted will remain CEO until a new one is found.

The investors applauded the choice of Rorsted because he had a good track record of increasing returns at the consumer goods company. The last years were marked by difficult conditions because the coronaviruses closed retail outlets and production around the world.

The company said in the release announcing Rorsted's departure that it was now the right time to initiate a CEO transition and pave the way for a restart after three challenging years.

Adidas shares have lost about 37% of their value this year, making them one of the worst performers on the Euro Stoxx 50 index. The stock fell as much as 6.9 euros, or 4.2%, to 158.7 euros.

The company credited Rorsted for helping speed up the brand's digital transformation, in particular its focus on direct-to-consumer sales.

Adidas surprised investors with a profit warning in July after a slower-than- expected recovery in Greater China.

Sales at most retailers have been impacted by mass testing in China. Foreign brands are struggling to hold onto China as a major growth driver due to consumer boycotts and preferential treatment for local companies. The Li Ning Co. is a company. Adidas replaced the head of its Chinese operations in March in order to promote an executive who had already been in China.

Adidas will need to grow second-half sales by more than 20% outside of China in order to meet the lowered guidance. According to analysts led by James Grzinic, that will requireizable market share gains. Adidas isn't likely to get the benefit of the doubt.

With the help of a woman.