Kasper Rorsted’s term as CEO of adidas AG will be over more than three years before his employment contract expires on July 31, 2026, despite the company experiencing double-digit growth in 85 percent of its business. But the brand’s business in China remains a mess, forcing adidas to address the situation with a number of measures in the second half, including a negative impact of approximately $375 million in H2 from taking back slow-moving inventory to sell through its factory outlet stores. Shares are down more than 46 percent since opening 2022 at $146.60 apiece.

The adidas AG Supervisory Board has commenced a CEO transition at the company that will see Rorsted depart from his senior executive post in 2023 after a new appointee takes over the position sometime next year. 

“After three challenging years that were marked by the economic consequences of the Covid-19 pandemic and geopolitical tensions, it is now the right time to initiate a CEO transition and pave the way for a restart,” said Thomas Rabe, chairman of the adidas AG Supervisory Board, in a statement.

Neither the company or Rorsted provided a specific reason for his departure from the company where he began in 2016 and oversaw a number of key developments ranging from the divestitures of TaylorMade, CCM Hockey and Reebok to growing the company’s online sales more than five-fold.

During its recently completed second quarter, the company’s North American business grew more than 20 percent in wholesale and 23 percent in Direct-To-Consumer with lifestyle sales up 19 percent as performance product sales grew 23 percent.