Current CEO Kasper Rorsted will remain in post "until a successor has been appointed" to help "ensure a smooth transition at the helm of the company", Adidas said in a statement.

Adidas CEO Rorsted to stand down in 2023, Source: Youtube/ WELT Nachrichtensender

"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 supervisory board.

The transition was "mutually agreed upon", according to the company's statement.

Rorsted, who has helmed the iconic German company since 2016, said the "past years have been marked by several external factors that disrupted our business significantly".

"It required huge efforts to master these challenges. This is why enabling a restart in 2023 is the right thing to do -- both for the company and me personally," he said.

Adidas in July cut its 2022 outlook, partly due to an expected double-digit drop in Chinese sales for the rest of the year as Covid-19 lockdowns keep consumers out of shops.

The firm said its adjusted guidance "also accounts for a potential slowdown of consumer spending in (other) markets during the second half of the year as a result of the more challenging macroeconomic conditions".

The Nike rival now sees net profit for the year coming in at 1.3 billion euros ($1.3 billion) compared to its earlier forecast of between 1.8 and 1.9 billion euros.